The most recent quarterly survey on American manufacturing resilience reveals that an increasing number of CEOs are committed to reshoring a portion of their overseas operations.
The poll, which was conducted by Forbes, Xometry, and John Zogby Strategies, found that 82% of CEOs have already implemented — or are actively pursuing — reshoring strategies, representing a 27% increase from January of this year. Just 7% of those surveyed said they are not planning to reshore any of their overseas facilities in the near future.
Perhaps as a direct result of these initiatives, 72% of poll respondents say there is now enough manufacturing capacity in the U.S. to address the world’s supply chain concerns. This spells great news for the nation’s manufacturing industry, concerning its dominance on the world stage, long-term economic growth, and job creation.
“CEOs are optimistic about the future of American manufacturing and business in general, and are increasingly embracing AI and other digital tools to navigate a constantly changing environment,” said Xometry CEO Randy Altschuler. “The pandemic, the global supply chain crisis and now the emergence of AI on a wide scale are combining to accelerate manufacturing’s digital transformation and reinject much needed resources into the more than 500,000 small- and medium manufacturers across the country. All of the ingredients are there to make American manufacturing as strong as it has ever been.”
Other key benefits associated with reshoring include a rise in digital transformation efforts, better protection against supply chain disruptions, and more sustainable business practices.
Reshoring Companies Are Investing in Digital Tools
Technologies including artificial intelligence (AI), virtual and augmented reality (VR and AR), edge computing, blockchain, 3D printing, and the internet of things (IoT) are quickly transforming the manufacturing industry — driving operational efficiencies, workplace safety, innovation, and product quality. As these technologies become cheaper, and more readily available, manufacturers in the U.S. can finally compete with the product prices of their overseas rivals.
In addition, reshoring initiatives are an opportunity for industrial businesses to bring digital technologies back home, serving to boost global competitiveness and encourage inter-state competition. With this in mind, companies that do plan to upgrade or build facilities on U.S. soil are incentivized to establish smart factories and invest in new technologies as a means to improve their manufacturing and supply chain operations and spur business growth.
