Kearney’s 10th Annual Reshoring Index Report is available, and the top finding is that reshoring isn’t something that will happen in the future. It’s happening now.
The Reshoring Index marks the first time that domestic manufacturing growth outpaced Asian LCC imports growth since 2019. The result is a positive 2022 Reshoring Index of 39. The Index reflects the year-on-year change in—the manufacturing import ratio (MIR), calculated by dividing the import of manufactured goods from the 14 Asian LCCs by the U.S. domestic gross manufacturing output.
According to the report, reshoring is expected to create supply chains that will carry forward into the next decade. The report also shows that:
- Mexico has also taken a larger share of the U.S. manufacturing import market. American imports of Mexican manufactured goods grew from $320 billion to $402 billion (+26%). Nearshoring is growing.
- 96% of CEOs are evaluating reshoring have decided to reshore or already are reshoring—an increase from 78% in the previous year’s study
- Half of manufacturing executives are struggling to fill vacancies, down to basic manufacturing tasks. They are looking to automation and training to alleviate the challenge
- Reshoring is not based on geopolitical risks, but rather that U.S. government-enforced policies, regulations, and laws are highlighting those risks
- 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