General Members News

BofA Institute: Battle of the titans: Reshoring vs. friendshoring

  • Although U.S. manufacturing accounts for only 8% of total employment, the Reshoring Initiative found reshoring created 20% of manufacturing jobs in the last 15 years, with half of these created in the past five years, largely due to policy initiatives.
  • A BofA Global Research proprietary survey found only 20% of respondents expect significant reshoring, while 40% call for mild relocation to the U.S. within select sectors including electronics, biotechnology, and metals and mining. These sectors are more capital- than labor-intensive, and are expected to take one to three years to complete any reshoring initiatives.
  • Reshoring also faces increased risks from lack of qualified labor within the U.S. Therefore, nearshoring, or friendshoring, appears much more likely to benefit from tariffs this time around, according to BofA Global Research, and Mexico is considered to be a net beneficiary from the push from cost efficiency to geopolitical risk management.

Read the full analysis for a more in-depth look at these trends.

AMCHAM
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.