Reshoring trends, globalization no longer the default option
🌎 Reshoring trends, globalization no longer the default option.
Reshoring, or the trend of bringing manufacturing back to the home country or region from overseas, is gaining popularity among manufacturing companies for a variety of reasons. One major factor is the increasing cost of doing business in many overseas markets, including rising labor and shipping costs, as well as the complexity and uncertainty of global supply chains. These factors, combined with geopolitical tensions and trade disputes, have made it less attractive for companies to rely solely on overseas manufacturing. In addition, advancements in automation and digital technologies have made it more cost-effective and efficient to produce goods domestically, while also enabling greater customization and flexibility in production processes. Another factor is the growing demand among consumers for locally-made and sustainable products, which has created a market opportunity for companies that can differentiate themselves by producing goods in a more socially and environmentally responsible manner.
The Generalized System of Preferences (GSP) expired in 2020, ending the tariff-free access over 100 countries had to the United States market.