Thomas Sees Reshoring Driving $443B in U.S. Economic Value Over Next 12 Months
June 7, 2021
released its 2021 State of North American Manufacturing Annual Report
sharing groundbreaking insights from its latest survey canvassing the
North American manufacturing and industrial sectors. While the report
reveals multiple shifts in domestic sourcing trends and supply chain
demands, the key takeaway is the industry’s growing prioritization of
reshoring in the aftermath of COVID-19 and the associated benefits of
this shift for the U.S. economy.
Leading the charge toward U.S. and Canada-based operations are the automotive and oil and gas sectors, the most motivated verticals to add North American suppliers to their supply chains. Additional sentiment from survey participants reveals a strong interest in reshoring due to obstacles with overseas suppliers, such as availability of technical support and time zone differences. While the procurement professionals surveyed did identify challenges to sourcing materials locally, including barriers of price (40% of respondents) and speed (23% of respondents), the overwhelming majority of respondents still planned to reshore operations. The registered users of the Thomasnet.com® platform are reflecting this trend in reshoring as well. Thomas has processed more than $204 billion in sourcing requests over the past twelve months in comparison to $69 billion in calendar year 2018.
Two sources of data were used to construct this report: the State of North American Manufacturing Survey, which was conducted online through Qualtrics, and Thomasnet.com anonymized sourcing data.
Participating suppliers were mostly OEMs and custom manufacturers from a variety of industrial sectors with revenues spanning from less than $4.9 million to over $500 million. This latest installment of the Thomas Industrial Survey series garnered a total of 709 responses with 542 qualifying responses.
Survey respondents reported an average new supplier contract size of about $900,000. If 83% of the 579,811 manufacturing companies in the U.S. plan to engage with a domestic supplier on one new contract at that average size, this would total $443 billion in economic opportunity.