As the nation faces unprecedented challenges—from the pandemic to port strikes — manufacturers across multiple industries are reassessing how and where they produce goods. The trend of reshoring and nearshoring is reshaping the way businesses manage their supply chains. Beyond the logistical benefits, this shift has far-reaching economic and social impacts, including the revitalization of local economies and the reindustrialization of entire regions. Additionally, reshoring creates opportunities in talent acquisition and workforce development, requiring a strategic approach to ensure long-term success.
The Numbers That Drive Reshoring: Key Stats to Know
Reshoring is more than just a trend—it’s a powerful economic shift. The following numbers highlight how reshoring is transforming industries, from boosting domestic job creation to reducing dependency on global supply chains. These key stats set the stage for understanding the broader impact of this movement.
1.3 million jobs have been reshored to the U.S. since 2010, with more than 360,000 jobs reshored in 2022 alone, the highest year on record.
60% of companies cite supply chain reliability as their top reason for reshoring, with automation enabling businesses to offset higher labor costs.
83% of U.S. manufacturers plan to reshore production in the coming years, spurred by increased demand for American-made goods and improved supply chain control.
The CHIPS and Science Act allocated $52 billion to boost U.S. semiconductor production, with major players like Intel and TSMC investing in domestic operations.
Reshoring is expected to reduce U.S. imports by $70 billion annually, helping to shrink the trade deficit and boost economic stability.
84% of U.S. consumers prefer "Made in the USA" products, driving companies to meet the demand by bringing production back home.
The Reshoring Movement: A Strategic Response to Global Uncertainty
The decision to reshore or nearshore is about more than simply moving manufacturing closer to home. It’s about building resilience into supply chains, mitigating the risks of long, complex global logistics, and enhancing sustainability. Companies that once outsourced to low-cost regions are finding that the true costs of offshoring—including delays, tariffs, and quality control issues—are outweighing the perceived savings. As a result, they’re moving production back to regions where they can have more control, flexibility, and responsiveness.
One of the strongest voices in the reshoring conversation is Harry Moser, founder of the Reshoring Initiative. Moser emphasizes the importance of looking beyond just labor costs when evaluating offshoring. As he puts it, “The pandemic exposed the vulnerabilities in global supply chains. Reshoring offers businesses a way to regain control and contribute to revitalizing domestic industries. The Reshoring Initiative provides tools to identify the 20 to 30% of imports that are profitably reshored.” Moser’s Reshoring Initiative has been a key advocate in helping companies calculate the real costs of offshoring and make informed decisions about their supply chain strategies.
Why Companies are Reshoring and Nearshoring
There are several core reasons businesses are moving toward reshoring:
Building Resilience: Shortening supply chains helps companies avoid global disruptions like those seen during the pandemic. It’s about having greater control over operations and mitigating risks that arise from geopolitical conflicts, natural disasters, or even unexpected regulatory shifts.
Cost Considerations: While the cost of labor in offshoring destinations may be lower, rising transportation costs, tariffs, and logistical challenges often erode these savings. Bringing production closer to home can lead to cost stabilization over the long term.
Sustainability: With pressure from consumers and governments to adopt more eco-friendly practices, companies are looking for ways to reduce their carbon footprint. Local production reduces transportation emissions and offers better oversight of sustainable manufacturing processes.
Speed to Market: In a world where customers expect faster deliveries and customization, manufacturing closer to key markets allows companies to respond more quickly to demand changes, reducing lead times and improving customer satisfaction.
The Cultural and Social Impact of Reshoring
Reshoring doesn’t just strengthen business resilience—it revitalizes communities. In regions hit hardest by offshoring, particularly rural and post-industrial areas, the return of manufacturing offers more than jobs. It breathes life into local economies and sparks growth. For example, since 2010, over 1 million manufacturing jobs have been reshored to the U.S., creating new opportunities and boosting spending in communities that were once in decline.
A standout case is General Electric’s Appliance Park in Louisville, Kentucky. By reshoring production, GE added 1,300 jobs, which spurred local businesses and infrastructure investments. This type of resurgence helps restore community pride and identity, giving families a reason to stay and contribute to their local economy.
Reshoring also builds stronger ties between companies and their workforce, fostering a sense of belonging and loyalty. As businesses reestablish their roots in local areas, they create more inclusive work environments, resulting in better retention and collaboration. For these communities, reshoring is about more than just economic recovery—it’s about rebuilding the social fabric.
Long-Term Economic Implications of Reshoring
Reshoring has far-reaching economic impacts, reshaping both national and global markets. By relocating production closer to home, companies are driving reindustrialization and reducing reliance on imports, which boosts GDP and narrows trade deficits. This trend also opens up high-value roles in engineering, logistics, IT, and data analytics, helping to balance the labor market and create sustainable growth across sectors.
For example, Ford Motor Company reshored production of its F-Series trucks, investing $700 million into a Michigan plant and creating over 700 new jobs. This move not only boosted local employment but also positioned Ford to compete more effectively in the U.S. market, demonstrating how reshoring can help companies gain a competitive edge domestically while strengthening the national economy.
Globally, this shift is leading to a restructuring of supply chain hubs. Low-cost manufacturing centers like China may face reduced demand, while regions closer to major markets—like Mexico for North America—are seeing growth in nearshoring. However, this transformation introduces challenges. Countries dependent on outsourced production may experience economic slowdowns, while companies scaling domestic operations must navigate potential inefficiencies and talent shortages.
The Talent Equation: Navigating New Hiring Challenges
As companies bring manufacturing operations back to their home countries, the need for a skilled, adaptable workforce becomes a priority. Reshoring is about more than just moving production; it requires building a team that can handle the complexities of modern manufacturing, often involving advanced technologies like automation, robotics, and AI.
1. The Demand for Technical Expertise
The jobs of today—and tomorrow—require workers who are comfortable with cutting-edge technology. Manufacturing is no longer about manual assembly lines; it’s about smart factories where machines, sensors, and humans work together in real time. The demand for workers who understand digital systems, robotics, and data analytics is growing, but there’s a skills gap that needs to be addressed.
Reshoring isn’t just about bringing jobs back—it’s also about transforming those jobs to meet the needs of the future. Companies must be ready to invest in training and development to ensure their workforce has the skills to keep pace with technological advancements.
2. Addressing Regional Talent Shortages
Relocating manufacturing operations to new areas, especially in regions where industry has declined or is less developed, can lead to talent shortages. Even in regions with a manufacturing history, the skills required today are vastly different from those of the past.
To close this gap, companies can partner with local schools, vocational programs, and community colleges to develop training pipelines tailored to their needs. Apprenticeships and on-the-job training are also key strategies for preparing a new generation of workers.
3. Workforce Development and Upskilling
Reshoring success hinges on continuous learning. As technology continues to evolve, so too must the skill sets of employees. For companies investing in reshoring, workforce development is not a one-time initiative but an ongoing priority. Upskilling current employees not only closes the skills gap but also boosts morale and employee retention by offering opportunities for career growth.
4. Creating Diverse and Inclusive Teams
Reshoring provides companies with a fresh opportunity to prioritize diversity and inclusion in their hiring practices. By broadening recruitment efforts to tap into underrepresented groups, businesses can build a workforce that better reflects the communities where they operate. Diversity, when embraced, becomes a competitive advantage, driving innovation and improving organizational performance.
The Future: Technology and Talent Go Hand-in-Hand
Ultimately, the success of reshoring and nearshoring efforts depends on how well companies integrate technology and talent. It’s not enough to have the latest robotics or automation tools if the workforce isn’t trained to use them effectively. This shift requires a balance between human expertise and digital innovation, and the companies that strike that balance will lead the way in the new era of manufacturing.
Companies must focus on building resilient, tech-savvy teams and invest in the long-term development of their employees. By doing so, they can maximize the benefits of reshoring, drive operational efficiencies, and stay competitive in a rapidly changing marketplace.
Conclusion
Reshoring and nearshoring are more than just supply chain strategies—they are transformative movements that impact everything from cost control to sustainability to workforce development. As businesses continue to bring manufacturing closer to home, the need for skilled, adaptable talent is at the forefront. By prioritizing workforce development, investing in cutting-edge technology, and fostering diverse teams, companies can unlock the full potential of reshoring. Harry Moser and the Reshoring Initiative remind us that this is not just about regaining control over supply chains—it’s about revitalizing domestic industries and building a future-ready workforce that can thrive in the new era of manufacturing.
I am looking forward to partnering with manufacturing companies and professionals to contribute to this exciting revitalization!