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  • Writer's pictureKCStark

America's Reshoring Opportunity: A New Dawn in Manufacturing

Good morning America! Take a look around and lift your head high. With all the media hype of 'doom and gloom,' our nation is brewing more 'can and do.' In the wake of a post pandemic economy and the first invasion a Eureopean ally, America is roaring back!

Echoes from the Industrial Revolution: The CHIPS and Science Act

The U.S. once stood at the forefront of the Industrial Revolution, innovating and leading global manufacturing. The spirit of innovation and determination that drove us then can be harnessed today to reshape our manufacturing landscape.

Historic Boost in Manufacturing Construction: New U.S. Factories

American manufacturers are championing new factory constructions, especially in areas like semiconductors, food and beverage processing, and chemicals and plastics.

Growth in electronics is a remarkable 237%, with other sectors following closely at 20%.

Strategic Trends: Near-shoring and Friend-shoring

After decades of seeking the cheapest manufacturing options, American manufacturers are shifting to more reliable and politically viable longterm investments in the U.S..

  • Businesses are opting for nearby facilities (near-shoring) or those in countries with U.S. political alignment (friend-shoring).

Why Reshoring Matters: Jobs and Security

  • Advocacy for the CHIPS and Science Act.

  • Infrastructure Investment and Jobs Act.

  • A bid to shorten and strengthen supply chains, minimizing geopolitical challenges with countries like China.

  • The resurgence of semiconductors, primarily older chips with major production in China and Taiwan.

  • The Covid-19 pandemic revealed the pitfalls of elongated supply chains, experiencing the most significant delays since 1973.

  • The Russia-Ukraine war highlighted the risks associated with long supply chains.

On July 28, the President and the bipartisan group announced agreement on the details of a once-in-a-generation investment in our infrastructure, which was immediately taken up in the Senate for consideration. The legislation includes around $550 billion in new federal investment in America’s roads and bridges, water infrastructure, resilience, internet, and more. The bipartisan Infrastructure Investment and Jobs Act will grow the economy, enhance our competitiveness, create good jobs, and make our economy more sustainable, resilient, and just.

Hurdles on the Path: U.S. Unemployment at Record Lows, aka Record High Employment

Labor is scarce, given the low U.S. unemployment rate and an aging workforce.

  • Building a comprehensive network of component suppliers, akin to China's robust system, is vital.

  • Ensuring uninterrupted electricity supply, with the U.S. grid's current challenges, is crucial.

  • The U.S. regulatory maze, while beneficial over some overseas counterparts, must be navigated smartly.

Marching Forward: Build Local Build Better Last Longer

The benefits of international trade with amicable nations are undeniable. However, rising geopolitical tensions and the need for dependable supply chains are tilting the scales towards reshoring. While it might not be an instant shift, the trend heavily leans toward local and proximate manufacturing.

Call to Action: Rise and Shine America

History has shown us that Americans thrive in the face of challenges. Just as the Industrial Revolution reshaped our nation, today’s reshoring opportunities beckon a new era.

Let's sidestep the gloom and harness that classic American "can-do" spirit. It's time to innovate, lead, and craft a brighter, self-reliant future.


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