Reshoring Analysis Points To Better Days Ahead
20 Aug 2021
Thankfully, the “New Normal” I wrote about here in the May 2020 issue did have an expiration date after all. There may not be a specific calendar date to point to. But rush hour traffic resembles pre-pandemic volumes, people are traveling in droves — even if masks are still required on planes — and real estate occupancy rates are on the rebound. These and other factors will vary geographically, but they’re clearly trending in the right direction.
I’m even more optimistic about some economic trends regarding reshoring of operations I came across. The 2021 State of North American Manufacturing Annual Report from Thomas, the New York-based industrial sourcing and marketing platform, says 83% of North American manufacturers are likely or extremely likely to reshore production, up from the 54% of survey respondents who said they planned to reshore back in March 2020.
The automotive and oil & gas sectors were the most motivated verticals with plans to add North American suppliers to their supply chains, the report argues. Most notable, this shift toward reshoring will lead to a massive amount of economic opportunity in the U.S., with the potential to drive $443 billion in economic value over the next 12 months.