BLS & Co. Managing Director Andy Shapiro was featured in LinkedIn News for his insight on how companies are reshoring from China to the United States. Read more of his insights below!
Is the era of outsourcing coming to an end? Stung by strict COVID lockdowns in Chinese cities and snarled global supply chains, American CEOs are increasingly looking to move production back to the U.S. or Mexico. References to buzzwords such as onshoring and reshoring in earnings calls and conference presentations are up more than 1,000% compared to pre-pandemic periods, Bloomberg reports. And it’s not just talk: the construction of new manufacturing facilities in the U.S. has rocketed 116% over the past year, compared to a 10% rise in all building projects combined.
"The movement to reshore production to the U.S. may not be an illusion, or just wishful thinking. According to Bloomberg News, a January poll of C-suite executives revealed that 90% were planning to, or already had underway, initiatives to move production from China, with much of it destined for the U.S. And according to the Dodge Construction Index, construction of new U.S. manufacturing facilities has "soared" 116% in the past year, vs. 10% on all building projects. Finally, and anecdotally, our own experience at the U.S. Department of Commerce's big FDI conference last week (the SelectUSA Summit), has given us confidence that the wave of new inbound industrial projects will not be abating any time soon," said Andy Shapiro, managing director of Biggins Lacy Shapiro & Co.