The Onshoring Wave: A Boost for U.S. Industrial Sector

Author

Andrew Dunn
August 17, 2023

There's an important economic shift happening in the United States that we'd like to spotlight: the trend of industrial onshoring. This phenomenon is not just reshaping the manufacturing landscape, but it's also playing a critical role in boosting the U.S. economy.

Onshoring involves relocating business operations from foreign countries back to the home country. In 2021 alone, manufacturing and onshoring created 261,000 new job opportunities for U.S. citizens1 , and in 2022, this trend led to 350,000 new jobs1 . This surge in domestic job creation signifies the robust growth and potential of onshoring.

The primary industries benefiting from onshoring are the manufacturing and e-commerce sectors. E-commerce, in particular, has seen a surge in demand for industrial space underpinned by the growth in online shopping2 . As companies bring manufacturing back to the U.S., demand for industrial spaces soars even higher3 .

So, why are companies choosing to onshore? A multitude of factors contribute to this decision. Supply chain disruptions caused by global events have highlighted the benefits of localized manufacturing. It reduces dependency on international suppliers, mitigates risks, and enhances supply chain resilience. Additionally, onshoring brings about an increase in higher-paying jobs, revitalizing communities that were economically devastated when factories moved overseas4 .

Government policies have also played a significant role in encouraging onshoring. Tax incentives, subsidies, and other support measures have made the U.S. a more attractive place for companies to set up their manufacturing units. The Kearney Reshoring Index indicates that 92% of CEOs have expressed positive sentiments about onshoring5 , reflecting its growing appeal.

The onshoring trend presents exciting opportunities for businesses, workers, and the broader U.S. economy. However, it also poses challenges, such as the need for skilled labor and advanced manufacturing capabilities. Companies and policymakers must work together to navigate these obstacles and maximize the benefits of onshoring.

Stay tuned for more updates on the onshoring trend and its impact on the U.S. economy. We encourage you to delve deeper into this topic, explore potential opportunities, and consider how your business can benefit from this shift.

To stay informed, click here to subscribe to our regular updates on the onshoring trend. Let's embrace the future of American manufacturing together!

Best,

Andrew Dunn

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