The new era of American manufacturing: evaluating the risks and rewards of reshoring

Abstract

This article delves into the complex trend of reshoring U.S. manufacturing, highlighting supply chain challenges and potential advantages. It analyzes economic drivers, including trade policy shifts and the demand for supply chain resilience heightened by the COVID-19 pandemic. The study addresses the skilled labor shortage and capital investment requirements for updating production infrastructure. It also examines logistical adaptations essential for reshoring success and the role of technology in supply chain optimization. Lessons from global reshoring provide insights for U.S. strategies. The article concludes with collaborative reshoring strategies, underscoring the importance of government support, corporate planning, and educational initiatives. It contributes to the debate on reshoring's role in strengthening the U.S. economy and its manufacturing competitiveness.

A Binary-State Continuous-Time Markov Chain Model for Offshoring and Reshoring

“…The solution procedure for the stochastic optimal control problem characterized by the objective functional (5), by the motion Equation ( 4), and by the initial condition X 0 is the same as described in [11]. As usual, X 0 is independent of the evolution (4) of the stochastic process (X t ) t∈[0,T] .…”

“…The explanations for this change in direction are numerous and highly different. Among them, there are well-known economic reasons, such as the reduction in the labor cost gap between the home country and the host country or logistics costs, but also planning risks, such as global supply chain risks and the impact of production/delivery time [3,5]. Furthermore, in determining the spread of reshoring, there are problems related to the lack of skilled workers in the host country or the lack of knowledge about the foreign destination.…”