U.S. companies are exploring manufacturing options closer to home with renewed interest to secure the supply chain, according to The New York Times (subscription).
The problem: The growth of investment in manufacturing production facilities around the globe, including in China, can result in the shouldering of hefty freight costs while dealing with significant delays in delivery.
The opportunity: Many companies, including America Knits, General Motors, Samsung, Micron Technology and Toyota, are repositioning and resecuring the supply chain by “onshoring” or “near-shoring” their operations to locate production closer to buyers as the pandemic wears on. In addition to creating more reliable and secure supply chains, this kind of onshoring can help reduce pollution and fossil fuel emissions that are typically incurred by transoceanic shipping, while also offering American jobs in domestic production facilities.
The road ahead: Companies are investing billions to redirect investment and bring production home. Industries with complex and more expensive products, such as automobiles; semiconductors; defense and aviation; and pharmaceuticals, could advance another industrial resurgence.
Learn more: Check out the NAM’s recommendations for strengthening the manufacturing supply chain as part of our American Renewal Action Plan.