Reshoring

The realization that supply chains are too long and complicated started about ten years ago but was accelerated by Covid and companies are looking to retool here in North America. Companies that in the past used excess profit to increase dividend and buy back stock will now start to use those funds for investing in new facilities. These new manufacturing plants will use the latest technology and be more efficient and more productive. Here is a quote from Business Insider magazine: American manufacturers are increasingly bringing production back to the US to reduce their reliance on global supply chains that proved vulnerable to disruption such as the pandemic. Besides big companies like GE, Intel and US Steel reshoring, other companies like Walmart and Target are promoting reshoring. Walmart will buy more from existing domestic suppliers, do business with new domestic suppliers, and help current suppliers reshore their overseas production. One bell weather company to watch is Apple who is sitting on billions in cash but still reluctant to give up on China. They are trying to get on the band wagon but not with a full effort. Managers in Apple's operations department have instructed employees to focus on sourcing additional components and locating production lines outside China for more new products coming in 2024, though the company also plans to retain extensive operations in the country