economy
After decades of moving factories overseas to cut costs, many Western companies have begun returning production closer to home.
Reshoring describes companies moving manufacturing back home after relocating it overseas for cheaper labor. The reversal is driven by supply-chain shocks exposing the risk of distant factories, rising overseas labor costs, and government incentives encouraging domestic factory construction.
Offshoring is essentially the opposite, the earlier decades-long move of factories abroad that reshoring now reverses. Outsourcing means hiring an outside company for a task, which may or may not cross borders, a related but distinct concept.
Reshoring doesn't always bring back the same low-cost jobs that left; many reshored factories are heavily automated, so facilities return even though fewer manufacturing jobs may result than originally left.
economy
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