Reshoring: Surf's up. Key Considerations for U.S. Occupiers

The pandemic clearly spotlighted how easy it is to unhinge even the most well-connected supply chains. As quarantine enforcements closed country borders, many manufacturers scrambled to find alternative domestic suppliers to finish their products. Companies like Apple and Microsoft had to delay their new product release dates after their offshore manufacturing plants halted production. Many pharmaceutical companies had shortages of common U.S. prescription drugs or their ingredients, many of which are sourced in China or India. Goods were held up throughout the world as several ports ceased operations temporarily and only resumed shipments in recent months. Reshoring by bringing manufacturing and services back to the U.S. from overseas may be a prudent decision for these companies to avoid being caught off-guard again.

Today, industrial companies should be asking themselves and their real estate advisors: Is reshoring some or all our operations the right decision for us, both in the current environment and for the long term?