This article was published in Bloomberg July 6, 2022. While it does not talk specifically about the sewn products industry, it does address a topic that is always important to SPESA and its members: reshoring. You can read additional coverage from Bloomberg on the rise of the American factory here.
Executives in the US have been using the buzzwords onshoring, reshoring or nearshoring at a greater clip this year than they did in the first six months of the pandemic.
That’s according to a Bloomberg review of earnings call and conference presentations. More importantly, there are concrete signs that many of them are going beyond just talk and acting on these plans.
The construction of new manufacturing facilities in the US has soared 116% over the past year, dwarfing the 10% gain on all building projects combined, according to Dodge Construction Network.
There are massive chip factories going up in Phoenix. Intel is building two just outside the city. Taiwan Semiconductor Manufacturing is constructing one in it.
And aluminum and steel plants that are being erected across the south, including in Bay Minette, Alabama (Novelis); Osceola, Arkansas (US Steel); in Brandenburg, Kentucky (Nucor).
Near Buffalo, New York, all this new semiconductor and steel output is fueling orders for air compressors that will be cranked out at an Ingersoll Rand plant that had been shuttered for years.
Scores of smaller companies are making similar moves, according to Richard Branch, the chief economist at Dodge. Not all are examples of reshoring. Some are designed to expand capacity.
But they all point to the same thing — a major re-assessment of supply chains in the wake of port bottlenecks, parts shortages and skyrocketing shipping costs that have wreaked havoc on corporate budgets in the US and across the globe.