The offshoring trend in U.S. manufacturing has been the topic of news reports, international politics, and heated debates for decades. Societal shifts and the rise of advanced manufacturing are poised to bring about the end of offshoring. As developing nations have grown in wealth and the digitization of all aspects of manufacturing, or Industry 4.0, is taking hold across a range of sectors, the cost advantages of offshoring for U.S. manufacturers are diminishing. These factors, as well as the recent political climate, have inspired domestic companies to move production back to the U.S. And, as the world enters the “new normal” business climate, the COVID-19 crisis will dramatically accelerate this trend.
But how will the return to manufacturing — including the factory job and the factory itself — take shape? And what are the implications of these changes?