The Reshoring Initiative’s Data Report on manufacturing returning to the US reveals surprising gains. A number of trends are prompting manufacturers to restart domestic manufacturing. The supply interruptions due to the pandemic, higher labor costs in China, and concerns about intellectual property theft are driving an interest in building North American factories.
When the Reshoring Initiative was founded in 2010 the US was beginning to recognize the negative impacts of offshoring. Issues include the destruction of the blue-collar middle class, the loss of intellectual property, the reduction of innovation, financial miscalculations from using price instead of the total cost, and the peril of accruing a massive national trade deficit.
Recent developments such as the pandemic, the Russian war on Ukraine, the risk of China decoupling, and the climate crises have exacerbated the problems due to offshoring. According to the Reshoring Initiative, US manufacturing used to signify economic prosperity and competitiveness. Today national security, sustainability, and self-reliance are increasing the argument for reshoring.
These slides highlight the content of the Reshoring Initiative’s report.