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Made in America
- Currently, 12.5 million people work in US factories, up from 11.5 million in 2010, but still far below the 17 million that worked in the US 25 years ago, per The New York Times.
- The pandemic (and the supply chain issues it brought along) caused companies to rethink manufacturing locations, Rick Burke, managing director at Deloitte, told The New York Times. “The pandemic has sent a shock wave through organizations. It’s no longer a discussion about cost but about supply-chain resiliency.”
- Over one-third (37%) of US businesses plan to bring production back home, and 33% are looking to nearshore (bringing operations closer but not to the US), per an ABB survey. The Lego Group, for example, will invest more than $1 billion over the next 10 years on its first factory in Virginia.
- Companies are considering Mexico as a reshoring possibility, Theresa Wagler, CFO at Steel Dynamics, told The New York Times. Research from Kearney echoes this: 70% of CEOs have planned, are considering, or expect to move manufacturing to Mexico, though only 17% have already done so.
Why we care: Nearly all (90%) shoppers have a favorable or somewhat favorable view of products labeled “Made in the USA,” per Kelley Drye & Warren, meaning that moving production to the US makes good marketing sense.
But perhaps more importantly, moving manufacturing closer to home helps strengthen the supply chain at a crucial time when both retailers and consumers are being hit with unpredictability and inflation.
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