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Reshoring Set to Take Center Stage with President Trump Now in the White House

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Now that President Trump has moved into the White House, there are many areas that he is looking to make his mark, including reshoring. Reshoring has been a buzz word in the manufacturing industry for years now but appears finally to be gaining some ground as Americans, including the President, look to keep companies manufacturing their products here as well as incentivize companies to move their manufacturing facilities back to the United States. While the President has made it one of his missions to bring back manufacturing jobs to the United States, many manufacturing companies are already looking to move their operations back to the U.S. for two reasons. First, the wage gap between workers in the United States and overseas countries have narrowed, especially in China. Even though workers in the United States are still paid more than their Chinese counterparts, this disparity is not as large as it once was. With companies considering their entire manufacturing costs, many are seeing the benefits of manufacturing their products here. Second, manufacturers are able to control the supply chain better in the United States and manage any defects in products without the large lead times that overseas manufacturers face. This leads to better quality products and happier customers. No matter what we see from our lawmakers in Washington and the Trump Administration on this issue, companies are already seeing the benefits of bringing their manufacturing back to the United States. Berntson Porter will continue to monitor any new developments on reshoring.