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ARTICLE · 27 JULY 2023

Why Some Manufacturers Are "Reshoring" Their Operations

In recent years, there has been an emerging reshoring trend among U.S. manufacturers. The Reshoring Initiative, a not-for-profit organization, estimates that from 2021 to 2022...

United StatesGovernment, Public Sector

In recent years, there has been an emerging reshoring trend among U.S. manufacturers. The Reshoring Initiative, a not-for-profit organization, estimates that from 2021 to 2022, the number of new U.S. jobs from reshoring and foreign direct investment increased by nearly 35%.

REASONS TO USE DOMESTIC SOURCES

The COVID-19 pandemic exposed serious supply chain risks associated with offshoring. For some manufacturers, reshoring can help avoid supply chain disruptions and reduce transportation and shipping costs. Other factors contributing to the reshoring trend include:

  • Incentives for domestic manufacturing, including the federal CHIPS and Science Act and the Inflation Reduction Act, as well as state and local incentive programs designed to attract businesses;

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