Reshoring is a growing trend in which companies that once manufactured in China are now shifting operations to Mexico and the United States. Rising transportation costs, trade tensions, and the need for more secure supply chains have all contributed to this shift.
Key reasons behind reshoring:
- Rising costs in China: Wage inflation and stricter regulations have made manufacturing in Asia less cost-effective than it once was.
- U.S.–China trade war: Tariffs and trade restrictions have increased the cost of importing goods made in China.
- Greater control and flexibility: Locating operations closer to consumer markets allows businesses to respond more quickly to changes in demand.
Companies that have adopted reshoring strategies are seeing significant improvements in operational efficiency and customer satisfaction. In addition, government support through tax incentives in both Mexico and the U.S. has helped ease the transition.