The coronavirus pandemic may get American companies to do something the government has wanted for decades: return manufacturing to the United States.
Global manufacturing consulting firm Kearney released a report Tuesday that shows American manufacturing companies are leaving China en masse, spurred first by the trade war and solidified by China’s inability to contain COVID-19 after unleashing it on the global community.
Patrick Van den Bossche, a Kearney partner who co-authored the report, wrote:
Three decades ago, U.S. producers began manufacturing and sourcing in China for one reason: costs. The trade war brought a second dimension more fully into the equation―risk―as tariffs and the threat of disrupted China imports prompted companies to weigh surety of supply more fully alongside costs. COVID-19 brings a third dimension more fully into the mix, and arguably to the fore: resilience―the ability to foresee and adapt to unforeseen systemic shocks.
Indeed, the report indicated a “dramatic reversal” of a five-year trend in 2019 showing U.S. export its manufacturing. – READ MORE
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