70% 62% 41% 49%

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LABOR POLICY

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Reshoring and the Pandemic 

BRINGING MANUFACTURING BACK TO AMERICA 

Where We Were Before the Pandemic 

In the past decade (2010 – 2020), more than 1M jobs 1,000,000 jobs were reshored back to the U.S.1 

Why manufacturers want to move 

away from offshoring (2010-2020)1 

Quality, rework and warranty 

Freight cost 

Supply chain disruption, natural disaster 

risk and political instability 

Total cost 

Tariffs 

Green considerations 

Delivery 

Pandemic Disruption 

Our Reliance on Foreign Sources 

U.S. Department of Health and Human Services 

figures show that 95% of surgical masks 

and 70% of tighter-fitting respirators, 

such as N95 masks, are made overseas.3 

According to the Federal Drug Administration (FDA), 

nearly 3⁄4 of active ingredient manufacturing 

facilities for medicines sold in the U.S. are 

located in other countries.4 

The pandemic affected 98% of global 

supply chains, according to an Everstream 

survey of supply chain professionals.5 

Rethinking Supply Chains 

70% 62%

Why manufacturers want to 

move back (or invest in) the U.S. 

#1 Proximity to customers and markets 

#2 Government incentives 

#3 Skilled workforce availability and training 

#4 Eco-system synergies 

#5 Image and brand 

#6 Impact on domestic economy 

#7 Infrastructure 

Lean supply chain 

performance: the shorter the 

lead time, the less stock & raw 

materials needed on hand.2 

Note that factors are very similar 

for domestic companies 

choosing to reshore and foreign 

companies choosing to invest in 

the U.S. Slight variation is seen 

in some instances. For example, 

companies choosing to reshore 

place more emphasis on brand 

(“Made in U.S.A.” image) and 

impact on domestic economy. 

Foreign Direct Investment (FDI) 

decisions place more emphasis 

on government incentives and 

proximity to customers.1 

Top Industries Reshoring Back to the U.S. 

(includes Foreign Domestic Investment (FDI) (2010-2020)1 

Transportation equipment 

Computer and electronic products 

Manufacturing Is 

Returning From Electrical equipment, appliances & components 

Top Countries 

(2010-2020) 1 

Chemicals 

Plastic and rubber products 

Medical equipment and supplies 

Apparel and textiles 

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 

41% 49%

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

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

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

within the past 3 years. 

outweigh higher 

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 

Ensures the federal government invests taxpayer dollars in 

products "Made in America" 

 Establishes substantial role for the Manufacturing Extension 

Partnership (MEP) in conducting supplier scouting to identify 

domestic suppliers that are able to “produce goods, products, 

and materials in the United States that meet federal 

procurement needs.” 

Executive Order 14017 

Assessing and strengthening the resilience of supply chains 

 Reviewing supply chain risk, reshoring, and developing 

domestic and alternative supply chains. Use of Defense 

Production Act to address supply of PPE, tests, and vaccines. 

Calls for Reshoring from Industry 

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 

National Apprenticeship Act 

Could create nearly 1 million new 

apprenticeship opportunities 

The Cost-Benefit Analysis 

Reshoring will BUT... require investment: 

If all foreign firms, including The opportunity

U.S. companies, were to is enormous: reshore their manufacturing 

operations from China for If 83% of U.S. manufacturers 

products “not intended for contract with only one new

consumption in China,” they domestic supplier in the next

could face $1 trillion in capital year, an estimated $443 billion 

expenditures over a five-year is injected into the 

period – but analysis suggests U.S. economy.

13 

that this is supportable; the 

return on capital investment 

would only decrease slightly.7 

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 manufacturing By scouting and vetting providers of key 

suppliers for key components, FASTLANE, technologies, GENEDGE, the Virginia MEP,

part of the Ohio MEP, helped the helped Morphix Technologies – a developer 

entrepreneurs behind Edge Cycling and manufacturer of colorimetric chemical 

Technologies identify the suppliers to detection products – diversify beyond the 

develop and produce their innovative, defense market and grow production 

protective bicycle seat.17 capacity in a new product line.18 

By scouting and vetting providers of 

crucial services necessary for production, 

Manufacturer’s Edge, the Colorado MEP,

helped ConcealFab, provider of rooftop 

concealment (e.g., for antennas), reduce 

lead times, expand its supply 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