70% 62% 41% 49%

ECONOMIC POLICY LABOR POLICY

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Reshoring and the Pandemic Where We Were Before the Pandemic 

BRINGING MANUFACTURING BACK TO AMERICA 

1M In the past decade (2010 – 2020), jobs more than 1,000,000 jobs were 

reshored back to the U.S.1 

Why manufacturers want to move Why manufacturers want to Top Industries Reshoring Back to the U.S. 

away from offshoring (2010-2020)1 move back (or invest in) the U.S. (includes Foreign Domestic Investment (FDI) (2010-2020)1 

Lean supply chain 

performance: the shorter the Quality, rework and warranty #1 Proximity to customers and markets lead time, the less stock & raw 

materials needed on hand.2 

Transportation equipment 

Freight cost #2 Government incentives 

Computer and electronic products Top Countries Note that factors are very similar Supply chain disruption, natural disaster Manufacturing Is

risk and political instability 

for domestic companies #3 Skilled workforce availability and training choosing to reshore and foreign Returning From Electrical equipment, appliances & components

companies choosing to invest in (2010-2020) 1 

the U.S. Slight variation is seen Total cost #4 Eco-system synergies Chemicals in some instances. For example, 

companies choosing to reshore 

Tariffs #5 Image and brand place more emphasis on brand Plastic and rubber products (“Made in U.S.A.” image) and 

impact on domestic economy. Green considerations #6 Impact on domestic economy Foreign Direct Investment (FDI) Medical equipment and supplies

decisions place more emphasis 

Delivery #7 Infrastructure on government incentives and 

proximity to customers.1 Apparel and textiles

Pandemic Disruption 

Our Reliance on Foreign Sources 

U.S. Department of Health and Human According to the Federal Drug The pandemic affected 98% 

Services figures show that 95% of Administration (FDA), nearly 3/4 of of global supply chains,

surgical masks and 70% of active ingredient manufacturing according to an Everstream survey 

of supply chain professionals.5 tighter-fitting respirators, such as facilities for medicines sold in the 

N95 masks, are made overseas.3 U.S. are located in other countries.4 

Recognition of Supply Chain Risk 

Awareness that medical gear was being made abroad spiked concerns 

and heightened comprehension of supply chain risk.6 

 Moving the needle from ‘cost-competitive’ rationales to ‘risk-competitive’ rationales. 

 Shifting to ‘stakeholder capitalism’ with stakeholders defined more broadly as 

shareholders, consumers, employees, and the state.7 

Rethinking Supply Chains 

70% 62% 41% 49%

of firms surveyed said expect less focus of companies have reshored at agreed that benefits 

they were likely to reshore on Just-In-Time least a portion of manufacturing of onshore production 

in the coming years. manufacturing models. operations back to the U.S. outweigh higher 

within the past 3 years. labor costs. 

Foley and Lardner LLP survey 1 Kearney survey, March 2021, 120 U.S. manufacturing executives 8 

Thomas Industrial Survey March 2020 9 

The MEP National NetworkTM Meets the Challenge During The Pandemic 10, 11 

Realizing that most personal protective equipment (PPE) was made overseas, 

the MEP National Network, with MEP Centers in all 50 states and Puerto Rico, got involved, 

helping step up domestic production to meet our critical need. This exemplifies the important role the Network can play 

in helping companies develop national and local supply chains, which is of vital importance to reshoring efforts. 

The Alaska Manufacturing Extension Partnership Center 

 The Center helped match those in need of PPE with over 70 local manufacturers producing PPE, 

and helped transition a number of Alaska manufacturers to convert their operations to 

manufacture PPE. 

CONNSTEP, the Connecticut Manufacturing Extension Partnership Center 

 The Center developed a dedicated COVID-19 webpage for crucial material and resources for 

disaster loan and relief, labor and unemployment, workplace health and safety, and more. 

CONNSTEP created a separate website to match PPE manufacturers with the needs of 

healthcare workers and partnered with the state and its chief manufacturing officer to help 

facilitate the distribution. 

The Ohio Manufacturing Extension Partnership Center 

 The Center worked with the Ohio Hospital Association, the Ohio Manufacturers’ Association, and 

JobsOhio to source and manufacture PPE. Ohio MEP coordinated an alliance with 19 

manufacturers that quickly retooled to produce face shields to meet state and national demand 

and supported unique needs for testing booths. 

The Future of Reshoring 

Factors Accelerating Reshoring 8, 12 

Executive Order 14005 National Apprenticeship Act 

Ensures the federal government invests taxpayer dollars in Could create nearly 1 million new 

products "Made in America" apprenticeship opportunities 

 Establishes substantial role for the Manufacturing Extension 

Partnership (MEP) in conducting supplier scouting to identify 

domestic suppliers that are able to “produce goods, products, The Cost-Benefit Analysis and materials in the United States that meet federal 

procurement needs.” 

Reshoring will 

BUT... require investment: Executive Order 14017 

Assessing and strengthening the resilience of supply chains If all foreign firms, The opportunity

including U.S. companies, is enormous: were to reshore their  Reviewing supply chain risk, reshoring, and developing manufacturing operations If 83% of U.S. domestic and alternative supply chains. Use of Defense from China for products manufacturers contract 

Production Act to address supply of PPE, tests, and vaccines. “not intended for with only one new

consumption in China,” domestic supplier in the 

they could face $1 trillion next year, an estimated 

in capital expenditures $443 billion is injected 

over a five-year period – into the U.S. economy.

13 

but analysis suggests that 

Calls for Reshoring from Industry this is supportable; the 

return on capital 

investment would only 

decrease slightly.7 

A coalition of 21 industry groups including the 

American Federation of Labor and Congress of 

Industrial Organizations, The Alliance for 

American Manufacturing, the American Iron and 

Steel Institute, and the American Steelworkers 

have called on the U.S. government to invest in 

domestic production of PPE.14 

The American Medical Association (AMA) has called on the U.S. 

government to ramp up PPE production in the U.S, citing shortages.15 

 More than 33% of 3,500 doctors responding to a 2020 AMA survey said acquiring PPE was very or extremely difficult. 

 In small practices, that number was even greater: 41%.16 

How the MEP National Network Can Help Reshoring Efforts 

In support of Executive Orders 14005 and 14017 – to focus on 

manufacturing in America and establishing domestic suppliers – 

MEP Centers can help companies reshore their manufacturing operations 

by identifying domestic suppliers through Supplier Scouting. 

MEP National Network Supplier Scouting Success Stories 

By scouting and vetting local By scouting and vetting providers of key By scouting and vetting providers of 

manufacturing suppliers for key technologies, GENEDGE, the Virginia crucial services necessary for 

components, FASTLANE, part of MEP, helped Morphix Technologies – production, Manufacturer’s Edge, 

the Ohio MEP, helped the a developer and manufacturer of the Colorado MEP, helped 

entrepreneurs behind Edge Cycling colorimetric chemical detection ConcealFab, provider of rooftop 

Technologies identify the suppliers products – diversify beyond the concealment (e.g., for antennas), 

to develop and produce their defense market and grow production reduce lead times, expand its supply 

innovative, protective bicycle seat.17 capacity in a new product line.18 chain, and improve workflow.

19 

www.nist.gov/mep/mep-national-network 1-800-MEP-4MFG

Sources: (1) Reshoring Initiative 2020 Data Report, Reshoring Initiative; (2) Lean Supply Chain Performance: Onshoring’s Secret Weapon, Ericksen, Industry Week, 4/2/2021; (3) How Decades of Offshoring Led to a Mask Shortage in a Pandemic, wired.com, 3/29/20; (4) What Would It Take To Bring More Pharmaceutical Manufacturing 

Back To The U.S., Lukin, npr.org, 4/24/20; (5) Everstream Analytics Annual Risk Report 2021, Everstream Analytics, March 2021; (6) American manufacturers pine for home as COVID disruptions, Trump tariffs shake up supplies, Braga, Money; (7) U.S. and European firms face $1 trillion in costs to relocate their Chinese supply chains, BofA 

says, Smith, CNBC, 8/18/2020; (8) Global pandemic roils 2020 Reshoring Index, shifting focus from reshoring to right-shoring, Van den Bossche, Blaesser, Castano, and Serraneau, Kearney; (9) Reshoring America: Can the Heartland Lead the Way?, Kotkin, Lind, and Shideler, Heartland Forward; (10) MEP National Network: Meeting the 

Challenge: https://www.nist.gov/system/files/documents/2020/07/08/MEPNN%20Meeting%20the%20Challenge%2052920-WEB.pdf; (11) https://curs.unc.edu/wp-content/uploads/sites/400/2021/01/Gearing_Up.pdf; (12) 3 Underreported Trends That Will Accelerate Reshoring, Uphoff, Forbes, 8/24/2020; (13) State of North American 

Manufacturing, 2021 Annual Report, thomasnet.com; (14) Industry Group Coalition Supports Reshoring PPE Manufacturing, IW Staff, industryweek.com, 7/20/20; (15) New hope for fixing supply chain problems on PPE, tests, vaccines, O’Reilly, ama-assn.org, 1/29/21; (16) Amid PPE shortage, AMA collaboration offers supplier for doctors, 

O’Reilly, ama-assn.org, 4/13/21; (17) https://www.nist.gov/mep/successstories/2020/edge-cycling-supplier-scouting; (18) https://www.nist.gov/mep/successstories/2017/-diversifying-beyond-defense-market; (19) https://www.nist.gov/mep/successstories/2017/right-quality-product-right-time; (Additional) The Future of Manufacturing: Reshoring 

and the Global Supply Chain, Duff & Phelps; The Reshoring Trend, infographic, Reshoring Initiative, 12/31/2014; Cost of Manufacturing Operations Around the Globe, KPMG/The Manufacturing Institute, 2020; ‘I’ve Never Seen Anything Like This’: Chaos Strikes Global Shipping,” Goodman, Stevenson, Chokshi, and Corkery, The New York 

Times, 3/7/21; How to rebound stronger from COVID-19: Resilience in manufacturing and supply systems, World Economic Forum/Kearney, April 2020; Not Much Progress on PPE ‘Reshoring,’ Fiore, Medpage Today, 9/25/2020; Rebuilding and Reshoring: Establishing Supply Chains by Increasing Competitiveness, Moser, Reshoring Initiative, 

8/3/2020; Rebuilding and Reshoring: How Did Offshoring Get So Strong?, Moser, Reshoring Initiative, 8/17/2020; Reinvesting in the USA: A Case Study of Reshoring and Expanding in the United States, U.S. Department of Commerce/International Trade Administration, 2019; Reshoring & Sustainability: Beyond the Horizon, Reshoring 

Institute, 2/26/2020; Reshoring advanced manufacturing supply chains to generate good jobs, Fish and Spillane, Brookings Metropolitan Policy Program, July 2020; Reshoring Is Creating Opportunities For North American Manufacturers, Hanno, Thomas, 8/20/2020; Strategic Reshoring: A Literature Review, Bolter and Robey, W.E. Upjohn 

Institute, 2020; Supply chains do the math on reshoring’s pros and cons, Kaplan, Supply Chain Dive, 4/8/2021; The Resilient Economy: Integrating Competitiveness and Security, Transform 2020, Council on Competitiveness; Updated employment multipliers for the U.S. Economy, Bivens, Economic Policy Institute, 1/23/19