The Truth About Reshoring

Why It Matters

Understanding the true limits of reshoring prevents misallocated investments and guides firms toward viable supply‑chain strategies that protect margins and reduce geopolitical risk.

Key Takeaways

• Reshoring often mischaracterized; many jobs never existed in U.S.
• Nearshoring primarily shifts production to Mexico, not Canada.
• “Friendshoring” targets allies but remains limited in practice.
• Majority of low‑cost assembly lines stay in China due to scale.
• Policy focus should prioritize realistic supply‑chain diversification strategies.

Summary

The video clarifies the buzzwords reshoring, near‑shoring and friend‑shoring, explaining that reshoring—bringing manufacturing back to the United States—is often a misnomer because many of today’s low‑cost assembly operations never existed on American soil.

It points out that the dominant trend is near‑shoring, chiefly moving production to Mexico, while Canada offers only marginal opportunities. Friend‑shoring, defined as locating factories in politically aligned nations, remains a niche concept with few practical examples. Meanwhile, massive Chinese assembly lines continue to dominate low‑wage electronics manufacturing, unlikely to relocate.

As the speaker notes, “these huge assembly lines in China… were never here and it’s not coming back,” and adds that “friendshoring… is a cute term, but those are kind of few and far between.” These remarks underscore the gap between rhetoric and reality.

For businesses and policymakers, the takeaway is to temper expectations of a wholesale return of manufacturing to the U.S., and instead focus on diversifying supply chains through realistic near‑shoring and strategic alliances, mitigating geopolitical and cost risks.

Original Description

Founder and Executive Director of the @ReshoringinstituteOrg, Rosemary Coates, unpacks the real story behind today’s reshoring movement. Drawing from decades of industry experience, she explains why much of the manufacturing often described as “coming back” to the U.S. was never here to begin with — and why the real momentum is in nearshoring to Mexico and emerging friend‑shoring strategies.

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