Business owners are breathing a collective sigh of relief as the post-COVID-19 recovery kicks into gear. It’s encouraging to see that companies are experiencing a return to normality. Still, there’s no denying that the business environment is vastly different than it was before the pandemic. Shortages and lost revenue during the lockdown highlighted the risks inherent in the global supply chain. Consequently, one of the more prominent corporate shifts has been an uptick in re-shoring, a movement where companies are bringing some of their offshore operations to the U.S. A survey of Bank of America at BofA Global Research’s analysts, who cover 3,000 companies worldwide, found that companies in more than 80% of global sectors suffered supply chain disruptions during the pandemic. As a result, three-quarters of those companies are widening the scope of their re-shoring plans.1
As you consider the opportunities that re-shoring presents, it’s important to view the long-term prospects for your business. “[Re-shoring is] a tectonic shift because we anticipate that it will happen slowly but persistently over the next five or 10 years,” suggests Ethan Harris, Head of Global Economics at BofA Global Research. “It won’t happen overnight, but the forces seem unstoppable.”
With change firmly underway, not only do the economy and labor force stand poised to benefit from an anticipated surge in production, suppliers across sectors will also have new opportunities to grow their businesses. Think beyond “Made in America” when considering your competitive edge. Instead, to take advantage of these new supply chains, you may want to look for ways to pivot your product lines or services in completely new and unexpected ways.