Reshoring now

Many U.S. manufacturers are reversing the trend of outsourcing and bringing back their production and jobs from overseas. This is called reshoring, and it has many advantages for the U.S. economy and society, such as lower costs, higher quality, more resilience, less trade friction, and more customer satisfaction.

In this blog post, we will explain what reshoring is, why it is good for America, what obstacles it faces, and how Mead Metals is contributing to this positive change.

WHAT IS RESHORING AND HOW DID IT START?

Graphic image depicting metal manufacturing reshoring

Reshoring is the reversal of offshoring and outsourcing, which are two ways of moving production or services to other countries or companies. U.S. manufacturers used these strategies for decades to cut costs, reach new markets, and benefit from global trade.

But offshoring and outsourcing also hurt the U.S. economy and society. They caused the loss of many manufacturing jobs, the decline of domestic skills and capabilities, the growth of trade and budget gaps, the reliance on foreign suppliers, and the exposure to various risks such as quality issues, IP theft, currency changes, political unrest, and natural disasters.

These risks became more clear after the 2008 financial crisis and the 2020 COVID-19 pandemic, which showed how fragile and vulnerable global supply chains are. Also, the cost gap between offshore and domestic locations narrowed due to rising wages and environmental rules in many offshore locations.

These factors made U.S. manufacturers rethink their sourcing strategies and decide to bring back some or all of their production to the U.S. — shining a light on the reshoring movement.