Tradelines News

Get the latest news and updates on cross-border customs and international trade.

Does Reshoring Need a Reboot?

Posted July 12, 2018

Under Economic Issues, International Trade Issues


(Patrick Van den Bossche – Logistics Management)

The amount of manufacturing being brought back to the United States is once again failing to keep up with offshored volumes, according to the latest Reshoring Index. In fact, imports of manufactured goods from the 14 countries that are typically associated with offshoring grew 8 percent last year—reaching a record-high value of $55 billion and the largest one-year increase since the economic recovery of 2011.

After rising to a five-year high in 2016, A.T. Kearney’s fourth-annual Reshoring Index has dropped 27 basis points. The Index, first launched in 2014, provides a simple but powerful indicator by aggregating actual manufacturing and import data. Focusing on goods coming from the 14 largest low-cost country trading partners in Asia, the Index reveals a number of compelling insights about the imports of offshore manufactured goods and the factors that are influencing reshoring.

Growth of imports from the offshoring countries have outpaced growth of US manufacturing gross output in four of the past five years and eight of the past 10 years—showing a clear direction away from reshoring. Since 2013, imports have increased by $118 billion, or 19 percent, while US manufacturing gross output has grown by only $81 billion, or 1 percent. So relatively speaking, the proportion of reshoring has become much smaller. Click here to read more.

Related: