Tired of seeing “Made in China” on most of your consumer goods? So am I. While imports from Asia are a trend that probably won’t go away anytime soon, American manufacturing may be making a comeback, if only in baby steps. Trump’s tariffs on China resulted in a manufacturing boom across the US, and domestic manufacturing is necessary for a healthy economy. When we aren’t as reliant on foreign manufacturing and materials, we are more resilient and can handle global supply chain threats more readily.
The COVID pandemic of 2020 (and the lockdowns that were implemented) created instability and insecurity in the supply chains. Disruptions caused by pandemic-related slowdowns of cargo shipping led to increased cost for goods, and the scarcity led to increased demand due to “panic buying.” Remember when you couldn’t find toilet paper or hand sanitizer in spring of 2020? The ports in China were also closed during lockdown, and when they finally started shipping again, US ports were congested, causing ships to sit offshore for days or weeks at a time.
These conditions were a wakeup call to many manufacturers suddenly thrown into uncertainty about procuring the materials needed to keep their businesses running. Reshoring suddenly seemed like something that might be necessary for stability and security. Reshoring is the name given to the process of returning manufacturing to a company’s home country. While Asian countries supply a large amount of the cheap labor and manufacturing capacity for American companies, the transport of those goods has become expensive, particularly with increased inflation. Reshoring to the US or even just North America can cut some of those costs. Generally speaking, the shorter the distance goods need to travel to their destination, the less expensive the transportation will be. Sourcing goods from North and South America also increases sustainability and decreases carbon footprint. Countries like China don’t have the strict emissions regulations that the US and other allies have. By sourcing goods and materials in North American, there is more oversight and transparency to prevent excessive greenhouse gas emissions and human rights abuses such as child and slave labor.
Another important reason to reshore is that Americans prefer to buy goods that are made in the USA. Studies by the Reshoring Institute have indicated that Americans are willing to pay up to 20% more for products that are made domestically. Buying domestic products, even when paying more, will pay for itself in the end, as it will put more Americans to work and benefit our own economy as opposed to our enemies.
It may be many years down the road before we can be reliant on our own continent for necessary goods, but the Reshoring Institute is committed to helping American companies get there. It’s definitely something that will benefit us in the long run.
Sources:
Freightwaves.com
Reshoringinstitute.org
Breitbart.com