Why Reshore?

There are many reasons for American manufacturers to reevaluate offshoring and consider reshoring. Companies are increasingly recognizing that costs, risks and strategic impacts previously ignored are large enough to overcome the shrinking emerging market wage advantages. They are seeing the benefits of proximity, i.e. producing in the market, especially when the home market is the U.S., still the world’s largest.

The top reasons that companies reshore include:

  • Lead time
  • Higher product quality and consistency
  • Rising offshore wages
  • Skilled workforce
  • Freight costs
  • Image of being Made in USA
  • Lower inventory levels, better turns
  • Better responsiveness to changing customer demands
  • Minimal intellectual property and regulatory compliance risks
  • Improved innovation and product differentiation
  • Local tax incentives

Why Reshoring Makes Sense for America

Reshoring is the fastest and most efficient way to strengthen the U.S. economy because it:

  • Helps balance the trade and budget deficits
  • Reduces unemployment by creating productive jobs
  • Reduces income inequality
  • Motivates skilled workforce recruitment by demonstrating that manufacturing is a growth career.
  • Helps maintain the broad industrial capability required for national defense