Reshoring, Consumer Trends Align on Made-in-America

Reshoring, Consumer Trends Align on Made-in-America

Nearly two-thirds of CEOs believe that their company is either returning operations to the US or expanding them onto these shores, while more than 10% of the CEOs think they might be sending more jobs abroad in the next three years.

Customers were left empty-handed when certain key products went missing in 2020. This kickstarted a whirlwind of challenges for U.S. companies supplying the market. The scandal came with promises from executives to do better and included everything from diversification & transparency improvements to returning production to North America.

A new Xometry poll, in collaboration with Forbes and Zogby, found that 64% of CEO's said they are reshoring or nearshoring their operations.

This isn't a new trend as manufacturing has always been a major contributor to the economy. It's important to note that this trend is going into 2020 and beyond, with increased support coming from consumers for products made in the USA. The Reshoring Institute released its latest “Made in USA” survey, and it looks like sentiment might be on the upswing. For years, we've been supporting the American economy. In theory, you can say people want to buy American made. But in reality, few are willing to spend more for it

In most cases, people prefer goods produced domestically. According to this survey, 69% of respondents reported a preference for Made in USA products and 75% indicate that they would be willing to pay 10 - 20% more for these items.

Still, for those interested in shifting production to take advantage of sentiment, there are considerations: For instance, the American labor shortage has created challenges for companies looking to bring back production to U.S. shores. Furthermore, the Reshoring Initiative, who hosts their newsletter on Bloomberg Intelligence, points to experts who believe it would take eight years to get just 10% of Apple’s production out of China.

Despite this, the list of tailwinds at this time is much longer. The Reshoring Initiative identifies factors with the potential to influence more businesses to bring manufacturing back onto US shores. These impactful variables include:

  • The CHIPS Act will usher in a new era of industrial policy.
  • High gas prices are in Europe
  • The state of manufacturing in the U.S. is growing quickly, and we're not the only ones seeing that, according to McKinsey.

Add that to the challenges of combatting Chinese manufacturing jobs. Reshoring Initiative says now is the time to reshore from China and cites several factors that make the region a danger zone of increasingly dim prospects. This article highlights the issues faced by the country, including its Zero COVID policy that has made production rates in key regions drop whilst also increasing costs for manufacturing amid a backdrop of rising debt and a housing crisis. Interestingly,

Your company may be one of them. Consumers are increasingly willing to spend their money as trends change, should yours? The time to find out is now, and this article will show you there's never been a better time to go shopping.

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