Will We See a Surge in Reshoring Post COVID-19?

COVID-19 has changed so much about everything, from our ability to run errands to managing global supply chains. As networks of trade shift and companies work to adapt to the changes brought on by COVID-19, there is a lot of speculation about what the future will look like for manufacturing, trade and business on a global scale. There is no doubt that COVID-19 will have lasting effects when it comes to reshoring, but the specifics of these changes have yet to be seen.

How COVID-19 Affects Reshoring

Reshoring is the process of companies bringing previously-outsourced supply chains back to the United States. There are a lot of factors driving the trend of reshoring, including an increased demand for American-made products on the part of consumers and the quality and consistency offered by domestic supply chains. Regardless of the factors driving reshoring in recent years, a jump in demand for reshoring seems likely in wake of COVID-19.

Learn more about the factors affecting reshoring.

The sudden interruption of global supply chains, especially those in China, caused serious disruption to manufacturing and trade. Once those supply chains were disrupted, the ripple effects were felt across industries almost everywhere in the country. In addition to the effects of supply chain disruptions on businesses and consumers, there were also widespread shortages of medical supplies that affected hospitals, clinics and emergency responders. These effects have been most severely impactful in areas where care providers and hospitals have been overwhelmed by an influx of new patients suffering from COVID-19.

While COVID-19 has highlighted many of the issues with global supply chains and offshore manufacturing, many of the concerns of industry leaders and lawmakers have been circulating for decades. Many industry leaders believe that the COVID-19 crisis will be a catalyst for some major changes to global manufacturing and the way supply chains are developed and managed. 

Reshoring After COVID-19

In an effort to encourage reshoring and bring more supply chains back to the United States, many industry leaders and lawmakers have proposed policy changes and tax incentives. In the past, tax incentives have been effective at encouraging reshoring and promoting the development of supply chains in the United States.

Not only does reshoring manufacturing reduce the risk of supply chain disruptions, it also has the potential to create thousands, or even millions, of jobs in the United States. Widespread manufacturing reshoring in the aftermath of COVID-19 could offer much-needed employment to people during a time of widespread job loss and unemployment.

Manufacturing and Engineering

At a time of great uncertainty, many people have questions about their manufacturing and engineering needs. At KASO Plastics, we are committed to providing customers with quality engineering and manufacturing services. Contact us today to learn more about our engineering, manufacturing and plastic injection molding services.