A recent CNBC Supply Chain Survey highlights significant skepticism among U.S. logistics managers about the prospects of reshoring manufacturing, despite growing calls to reduce reliance on foreign supply chains for economic and security reasons.
Key findings:
- High Costs Remain a Barrier: The top concern, cited by 57% of survey respondents, is the higher cost of U.S. production, especially due to labor. American manufacturing wages far exceed those in China and India.
- Skilled Labor Shortages: 21% of managers pointed to difficulties in finding skilled workers.
- Long Timelines: 41% of respondents believe reshoring would take at least three to five years, with a third expecting it to take even longer, citing the time and investment needed to build new factories and infrastructure.
- Uncertainty and Policy Concerns: Many firms are hesitant to invest in U.S. manufacturing amid uncertainty over future tariffs, raw material prices, and inconsistent government strategy.
- Automation and Skills Mismatch: Any resurgence in U.S. manufacturing is expected to be highly automated, requiring fewer but more highly skilled workers.
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