The shift to onshoring is full steam ahead
By Brittney Sherman
China accounts for 15% of the total U.S. trade, and according to The Reshoring Institue approximately 5 million industry jobs were lost to overseas workers between 2000-2014. The pandemic exposed the vulnerability of supply chains, the hyper dependence on foreign products and labor, and the impact of geopolitics on the manufacturing industry. As a result, manufactures have started to once again weigh the pros and cons of onshoring and nearshoring for business viability and longevity.
While experts don’t expect to see a full 100% shift back onshore, they do expect to see the construction of new facilities in closer proximity to end markets. Mexico, who surpassed China as the U.S.’s largest trading partner in 2023, and a handful of southern states are positioned to see the greatest uptick in manufacturing facilities as a result. Just this year, in July 2024, manufacturing construction spending increased 86% over the last two years, totaling $237 billion dollars. Further, there was a 25% increase in manufacturing jobs in 2022 versus 2021, totaling 350,000 new manufacturing employees.
Nationwide programs focused on the semiconductor and EV industries have helped pave the way to onshoring and industry experts expect the trend to continue as other manufacturers take advantage of the benefits. Consumers can expect to see an increase in “made in the USA’ labels on their favorite products in the years to come.
Read the full article by Kidder Matthews HERE.
