According to this report from the Reshoring Initiative, reshoring manufacturing to the United States is on the rise. In fact, reshoring has outpaced foreign-direct investment (FDI) for the first time since 2014.

There are a couple of reasons for this reshoring. 

COVID-caused uncertainty is leading companies to prioritize operations in their home countries. According to the report, the national demand to shorten and close supply chain gaps for essential products to make the U.S. less vulnerable is most likely to benefit PPE, medical, tech, and defense manufacturers.

Another is ongoing trade tensions between the US and China. China has received widespread condemnation for unfair trade practices. Although their tactics will be different, President-elect Biden will also work toward leveling the trade imbalances between the US and China.

“We publish this data annually to show companies that their peers are successfully reshoring and that they should reevaluate their sourcing and siting decisions,” said Harry Moser, founder, and president of the Reshoring Initiative. “With 5 million manufacturing jobs still offshore, as measured by our $800 billion/year goods trade deficit, there is potential for much more growth.”