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What does it mean to Reshore?

The term reshore may also be referred to in manufacturing discussions as to nearshore, onshore, inshore, or backshore.

To reshore means to reintroduce manufacturing production to a place that it has previously been removed from. As we saw decades ago, there was a mad dash for American manufacturing companies to head east in order to try to take advantage of low foreign wages and cheap raw materials. However, that number has begun to slow, and at times even produce a net surplus of manufacturers heading back to the US.

There are many reasons US companies chose to go offshore during that time, but there just as many reasons to bring manufacturing back to America now. The wages in foreign countries have gone up much faster than the US, there have been consistent quality concerns when manufacturing abroad, and the amount of time it takes to receive a product are usually enough to either deter companies from leaving, or to reshore all or part of their manufacturing.

Many businesses reshore manufacturing or reshore construction because it makes economic sense either directly through their savings in production, or indirectly by avoiding some of the previously described supply chain risks.

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