64% of manufacturers say reshoring is likely following pandemic: survey

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64% of manufacturers say reshoring is likely following pandemic: survey

May 14, 2020 · Matt Leonard @Matt_Lnrd

Dive Brief:

  • As disruptions from the coronavirus pandemic continue to unfold, 64% of companies across the manufacturing and industrial sectors “are likely to bring manufacturing production and sourcing back to North America,” to avoid similar difficulties in the future, according to a Thomas survey in April of 878 North American manufacturing and industrial sector professionals.
  • “By embracing real-time resource management, redundancy, reshoring, and the convergence between the digital and physical supply chains, manufacturers will come out of this crisis even stronger than they were before,” Thomas CEO Tony Uphoff said in a statement.
  • Among industries, manufacturing reported the most interest in nearshoring, with 28% of manufacturing respondents saying they were “extremely likely” to bring more production and sourcing back to North America following the pandemic, the survey found.

Dive Insight:

The pandemic has highlighted how disruptions at suppliers and supply chain partners can cause production holdups and shortages for the purchasing business. Many U.S. companies were unable to obtain parts from suppliers when factories in China shut down earlier in 2020. Sixty-four percent of respondents in the Thomas survey said their company had been affected by the shutdown of a nonessential business.

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