Reshoring Initiative Data: Reshoring Is Up in 2020 Despite COVID
23 Nov, 2020
- Due to the pandemic, in 2020 we are seeing U.S. reshoring outpacing FDI for the first time since 2014. COVID uncertainty is causing companies to emphasize operations in their home countries.
- 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 the following industries: PPE, medical, tech, and defense. Already, 60% of cases after March 2020 mention the pandemic as a factor in reshoring decisions.
- Going forward, we believe President Biden will prioritize reshoring highly but apply different methods than President Trump.
- There is continued growth in efforts by MEPs, EDOs and states to enable reshoring. The Reshoring Initiative is deeply involved in these efforts. By year’s end we will be working with 50 or more companies to reshore about 100 products. As a measure of corporate interest, the demand for this service is more than 20X the rate of 2019. Companies are doing their best to reshore, and we are here to help.