As one of our surveyed CEOs put it, “Reshoring will play a critical role in both the reimagining and the modernization of our supply chain.” Reshoring is, in other words, becoming both a cause and an effect of companies significantly rethinking how they construct and operate a supply chain that will carry them forward into the next decade.

For its part, Mexico has also taken a larger share of the US manufacturing import market. Since the COVID pandemic, American imports of Mexican manufactured goods grew from $320 billion to $402 billion (+26%), a clear indication nearshoring is growing. The Chinese have also been particularly active in Mexico with many Chinese companies starting manufacturing operations in Mexico.

The Reshoring Index is a unique barometer for tracking the extent to which America is reshoring manufacturing back from low-cost countries (LCCs) and regions in Asia that have benefitted for decades from US companies offshoring manufacturing. The Index is determined using—and reflects the year-on-year change in—the manufacturing import ratio (MIR), which is calculated by dividing the import of manufactured goods from the 14 Asian LCCs by the US domestic gross manufacturing output.

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Here are a few more key findings from our study:

	Our latest CEO survey indicated that 96 percent of CEOs are evaluating reshoring their operations, have decided to reshore, or already reshored, an increase from 78 percent in 2022.

	Creating new US manufacturing jobs doesn’t mean workers will automatically show up. Half of manufacturing executives struggle to fill vacancies, even for basic manufacturing tasks, and look to automation and training to address the challenge.

	When it came to the question, “What drives companies to reshore?,” the answer “geopolitical risks” was not even in the top five responses, but recently enacted US government-enforced policies, regulations, and laws are making corporate executives pay attention to these geopolitical risks.

	The external electronic manufacturing (EEM) industry is an example of an industry undergoing drastic supply chain changes. The ongoing electronification of products and the need to reset today’s global supply chains will lead many OEMs to partner with EEMs to enable and accelerate the needed transition by outsourcing their end-to-end global supply chains.

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