The Reshoring Lie: Why Bringing Manufacturing Home Will Bankrupt You

Politicians and LinkedIn influencers are begging you to reshore. But unless you enjoy 300% cost hikes and 2-year delays, here’s why ‘Made in America’ is a fantasy for most.

The Reshoring Trap A U.S. electronics brand caved to political pressure and reshored 30% of production to Texas. Two years later:

• $2M in OSHA fines for unsafe conditions (untrained workers).
• 1-year delays due to a skilled labor shortage.
• 250% cost increase vs. their former Vietnamese factory.

They quietly shifted production to Mexico — and still claim “Proudly American” on labels.

Case Study: Apple’s “China + 1” Masterstroke

• The Lie: “We’re investing $430B in U.S. manufacturing!” (spoiler: most is data centers, not factories).
• The Truth: 95% of iPhones are still made in China, but Apple added backup hubs in India and Brazil.
• The Win: Avoided 2022’s Shanghai lockdowns by shifting 10% of production to India overnight.

What I’d Do Differently as Your Global Strategist

1. “China + 1”: Keep Asian suppliers but build backup hubs in Mexico/Vietnam.
2. Nearshore Critical Parts: Only reshore components with IP risks (e.g., chips, defense tech).
3. Automate or Die: Reshoring only works if you replace 30/hrlaborwith30/hrlaborwith0.30/hr robots (see: Tesla’s Texas Gigafactory).

Red Flags You’re Reshoring for Clout ?? Your COGS spiked 25%+ post-reshoring. ?? You’re relocating due to TikTok fearmongering, not data. ?? Your “Made in USA” labels hide imported subcomponents.

Bottom Line: Reshoring is a PR stunt unless you’re willing to automate ruthlessly and hire engineers — not just assembly lines.

Ask Today:

• Is your reshoring plan funded by taxpayer subsidies (i.e., free money)?
• Could a geopolitical crisis still wipe out your “local” supply chain?
• Are you lying to customers about what “American-made” really means?

?? “Is reshoring patriotic — or just stupid? Let’s hear both sides.” #Reshoring #GlobalTrade #SupplyChainRisk