Reshoring manufacturing processing and production is continuing to trend upward in the United States. This trend has been on the upswing for the third straight year and reflects a growing desire for companies and executives to push harder at bringing business and manufacturing back to local shores.

What are the factors making onshoring a reality for local business?

  • The rising cost of foreign labor is creating more economic equality for manufacturing costs across the globe
  • The rising strength of foreign currency in formerly low value economies is forcing the value of foreign products to rise, generating higher costs
  • An increasingly positive view of American made products is giving additional value to American production over foreign production
  • Rising tax incentives in the United States targeted at businesses returning jobs to the United States encourages re-shoring
  • Decreasing and vanishing tax incentives in foreign countries makes off-shoring more expensive
  • Lower fuel costs in the United States provides lower costs in local production and manufacturing

Still think outsourcing is saving your business money?

Turns out, that’s no longer always true. In fact, more recently OEMs have recently found that local contract manufacturers can often reach a 1:1 cost comparison with offshore producers. This is frequently due to increasing automation in the U.S. that allows manufacturers to compete against lower wages for offshore manufacturers. Combine these improvements with the time and money saved in shipping costs and any costs due to possibly manufacturing errors, and those costs begin to level out in a major way.



Returning manufacturing to local businesses presents an opportunity for companies to gain a competitive advantage for both low and high volume output business. Cost equalization around the globe, and a growing value perception in American made products will provide a resource for growth and evolution in our local economy.

Some of the general factors that promote onshoring labor and manufacturing in the United States include:

  • A greater abundance of sophisticated robotics along with a skilled workforce needed for operation
  • Intellectual property protection is reliable and more protective in the United States
  • Transparency in labor and oversight in employment laws and regulations helps protect companies and their investments
  • Closer customer proximity, which helps generates an environment that encourages innovation
  • Reduction in supply chain disruptions which could include port closures and natural disasters saves time and money

Ready to learn more about theĀ benefits of onshoring? Take the KASO Challenge today and find out just how much you can save with local manufacturing.