Reshoring in Waller County

Research shows that reshoring or nearshoring is a viable option for US companies. With shifts in strategy in China, going more towards high-end manufacturing, companies should consider a reshoring strategy as a way to remain competitive and control more of their supply chain. In Waller County, we have spent two decades preparing an environment that will support US companies and those international companies looking to start operations within the US. We have a well-established logistics sector and a workforce built around manufacturing. We are here to support your reshoring efforts with a strong commitment to economic development to reward corporate investment.

From The Reshoring Institute - Global Labor Rates Compared

After the data analysis and considering the context that we are experiencing as we move away from the COVID-19 crisis, it is clear that the decision of what products to reshore must involve more than a simple comparison of labor costs. A better understanding of where companies should manufacture their products around the world must be a more holistic approach including a comprehensive analysis of labor costs, productivity, geopolitics, risk, where customers are located, and how markets are growing.
With new funding and tax incentives now available through the Chips and Science Act, the Inflation Reduction Act, and the Build Back Better Infrastructure Bill, reshoring and expanding operations in America have rapidly become popular choices for American manufacturers.

Another important factor to consider is that manufacturing policies are evolving from country to country, and this introduces yet another variable to consider. Manufacturers should re-evaluate location strategies from time to time. China’s “Made in China 2025” initiative, for example, has the objective of upgrading the manufacturing infrastructure of the country to move away from being the “world’s factory” to more of a producer of high-end and high-value products. China is shedding low-tech/low-cost/low-skill jobs to other developing low-cost countries. This movement up the manufacturing maturity curve puts China on a trajectory to match the manufacturing might of Germany, Switzerland, Japan, and the U.S. Read the full report here.

Made In The USA

From the Reshoring Institute:

The Reshoring Institute recently surveyed nearly 500 Americans across the country and asked if they prefer to
buy products that are labeled “Made in USA.” Would they be willing to pay more for these items? Nearly 70% of the
respondents said they prefer American-made products. Slightly more than 83% said they would pay up to 20%
more for products made domestically.

Our quick survey validated what we have been hearing anecdotally from consumers and manufacturers
everywhere. The strong preference for American-made products has been a growing trend over the past several
years. Respondents to the survey were both consumers and industrial buyers. Read the full report here.