By Kim Clark
From Kiplinger’s Personal Finance
U.S. companies prospered for decades as new markets opened for their goods and labor costs plummeted thanks to overseas production. But now, the pandemic and spreading political and military conflicts have stretched supply chains past the breaking point, prompting companies to bring many operations closer to home, says market strategist Ed Yardeni.
“Deglobalization was almost inevitable,” he says.
U.S. companies are starting to “reshore” production back to the United States, “near-shore” it to neighbors such as Mexico, or “friend-shore” it to allies such as Vietnam. Investment firm Piper Sandler counted more than 900 announcements of companies either building or expanding manufacturing facilities in the United States in the 12 months ending in May of 2022. In 2012, there were only about 100 such announcements….