As supply chain disruptions and geopolitical tensions continue to plague the global economy, the case for reshoring – bringing manufacturing production back to the United States from overseas – has never been stronger. Harry Moser, founder of the Reshoring Initiative, has been at the forefront of this movement for years, and he recently shared his insights on the Manufacturing Executive Podcast.
Moser began by highlighting the impressive growth in reshoring and foreign direct investment (FDI) jobs since 2020, driven in part by concerns over the potential for conflict between China and Taiwan. Companies are also increasingly considering environmental, social, and governance (ESG) factors, recognizing that manufacturing domestically can significantly reduce their carbon footprint.
When you bring work back from offshore to the U.S., you reduce the CO2 emissions by 25 to 50 percent, so the best way to achieve climate control, keep from all the flooding and all those kinds of things, is to re-shore.
But the benefits of reshoring go far beyond the environment. Moser emphasized the importance of self-sufficiency, particularly in times of crisis like the COVID-19 pandemic, when the U.S. faced severe shortages of personal protective equipment (PPE). Strengthening domestic manufacturing capabilities is also critical for national defense.
“We are sadly lacking in defense industry capability,” Moser warned. “Every simulation I’ve read, within two weeks, we run out of ammunition and missiles and howitzer shells and everything else. And China, with this huge industrial capacity and its commitment to the military, undoubtedly doesn’t.”
So, how did the U.S. find itself in this precarious position? Moser pointed to two root causes: a lack of manufacturing cost competitiveness and a shortage of skilled workers. He cited factors like an overvalued dollar, lower duty rates compared to other countries, and insufficient investment in automation as contributing to the cost disadvantage. On the workforce front, Moser lamented the societal emphasis on college degrees over vocational training and outdated perceptions of manufacturing as “dirty, dark, and dangerous.”
For companies looking to reshore, Moser offered several actionable recommendations, including promoting manufacturing careers and apprenticeships, using the Total Cost of Ownership (TCO) estimator to make informed sourcing decisions, and participating in import substitution programs to identify reshoring opportunities.
“Companies can use our TCO estimator to help them make the right decisions,” Moser said. “Even if something costs 20% less in China, when you pay duty and freight and carrying cost, inventory, intellectual property risk, and now with a 25% tariff on our list, you’re better off making it here.”
Moser also had strong words for policymakers, urging the government to promote apprenticeships and vocational training, encourage the use of TCO in sourcing decisions, reinstate immediate expensing for capital investments, lower the value of the U.S. dollar, and implement a Value Added Tax (VAT).
“To me, a Value Added Tax is the way to go,” Moser argued. “If you’re going to do a tariff, it should be on everything from everywhere forever, and a Value Added Tax meets that requirement.”
Through the Reshoring Initiative’s ongoing efforts, including a recent survey on the impact of Trump administration policies on reshoring and a “Manufacturing is Cool” t-shirt promotion for companies sharing their reshoring stories, Moser and his team continue to gather data and advocate for the importance of bringing manufacturing back to the United States.
As the global economic landscape continues to shift, it’s clear that reshoring will play a critical role in ensuring America’s prosperity and security in the years to come. With passionate advocates like Harry Moser leading the charge, the future of U.S. manufacturing looks brighter than ever.
