Reshoring jumps as businesses deal with new trade realities
Reshoring is an option for any US business producing overseas, but a screaming necessity for some of them. Reshoring (bringing physical production back to the United States) has surged from $9.33 billion at the end of 2023 to $1.7 trillion at the end of 2024. It will likely increase even more in 2025.
Why now?
- The recent tariffs but also COVID have inspired businesses to move their production to the more controllable environment of the United States proper. You can’t be hit with a tariff if it’s already here.
- Even before the Trump Administration, the US has passed laws incentivizing domestic production for semiconductors, cleantech, and general manufacturing.
- Shifting technology: it’s common to think of onshoring as increasing domestic jobs, and that’s great. But robotics and AI are allowing business leaders to onshore while hiring fewer laborers, making output more efficient and projectable (though heavier on the CAPEX).
Going forward, policy stability will be key to this continuing onshore movement. And the mass of the shift has been for high-tech manufacturing - it remains to be seen if new lower skilled production and jobs could come back as well.
Read more here: https://www.visualcapitalist.com/sp/reshoring-investments-in-america-have-surged-tema-01/
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