Reshoring

As the US leads the world away from globalization, the trend toward reshoring continues to grow. Areas rapidly expanding include electrical equipment, appliances, computer and electronic products, chemicals, transportation equipment, and medical equipment and supplies are among the industries that are benefiting from reshoring. This promotes shorter supply chains which means lower transportation cost. Add to that lower energy cost due to increased energy production, the newest more efficient factories and increased productivity from AI and these factors could help offset the increased cost due to higher wages for American workers. In the beginning wages will rise faster than the production cost savings and the result will be inflation. As time passes productivity will out pace wage increases and inflation will moderate. The number of industries coming home will continue to expand especially in the medical drug area.