If Factories Don’t Return to US Now, They Never Will
The pandemic, supply chain snarls, government action and automation have lined up to give manufacturers the best opportunity ever to bring production home.
The Chips and Science Act should help bring factories to the US.
Photographer: Saul Loeb/AFP/Getty Images
The Chips and Science Act that President Biden signed earlier this month is just the latest indication that the planets are aligning for a return of manufacturing to the US. Proponents have pushed for so-called reshoring for years, but it has never quite panned out. With the supply chain crisis still fresh in people’s memories, this time is different. If reshoring doesn’t become a significant trend over the next decade, it never will. To ensure this return of production isn’t haphazard and doesn’t leave gaping holes in the supply chain, there needs to be some coordination — and it doesn’t have to be by the government.
“Resiliency” is the buzzword making the rounds at corporate boards. This is a direct reaction to supply chains that broke down during the pandemic and injected a nasty bout of inflation into worldwide economies. When examining the root causes of the breakdown, it should lead to the conclusion that industrial production — just like the food at a restaurant — is much better when it’s made locally for the local market.