U.S. Regulations Can Raise Risks For Reshoring And Next-Generation Manufacturing

More than a third of United States businesses are either bringing back or considering bringing back manufacturing activity to the U.S. through "reshoring." Although one would think that bringing production back to the U.S. would minimize the impact of U.S. regulations of international conduct, in many cases the opposite is true.

The aggressive enforcement of U.S. law to the overseas sales and conduct of U.S. companies raises special considerations for companies engaged in reshoring of manufacturing. Although there are no special laws that apply to such companies, U.S. law has special resonance for companies engaged in this type of activity, because they need to establish new trading patterns that often emphasize collaborative relationships with affiliates and partner companies. The combination of changing patterns of trade and the need to share technical data in a collaborative fashion often changes the risk profile of the organization in a way that implicates U.S.