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Reshoring is Trending
Reshoring allows companies to take advantage of tax incentives, employ skilled workers and innovate while protecting their intellectual property. For some, the ability to operate facilities using inexpensive natural gas now makes U.S. locations far more cost-effective than ones abroad where electricity and coal are considerably more expensive. Eliminating import duties and reducing transportation costs can also improve profitability, enabling manufacturers to lower product prices and finance new R&D. In short, manufacturers are looking at the total cost of off-versus-re-shoring and seeing greater ROI on the home side. The tide has turned. Hundreds of companies in dozens of states are already re-shoring. The vast majority of those jobs have returned from Asia, primarily China, though a significant number have returned from Mexico and other countries. The biggest winners thus far in terms of job increases are: South Carolina  7,780; Michigan 6,721; California 6,014; Kentucky 4,612 and Texas  3,712.

So what does the future hold? Most industry watchers agree that the trend toward reshoring is just getting started. Industry experts expect the U.S. to produce more manufactured goods domestically in the coming years, and manufacturers will continue to reassess their individual circumstances in light of the latest global conditions and domestic opportunities. Harry Moser, founder and president of the Reshoring Initiative, points to the fact that somewhere between 3 and 4 million jobs remain overseas as an indicator of reshoring’s potential. Beyond precision metal fabricators and their customers that can benefit specifically from deep drawn reshoring, manufacturing in general expects to reap comprehensive financial and reputation management benefits from this trend.