Analysis: Labor Shortage, Costs Hinder Reshoring

In this new analysis, OMA Connections Partner RSM says labor costs and shortages are hindering efforts to return U.S. manufacturing from foreign locations. The number of manufacturing employees in the U.S. has declined by about 25% since 1992, while the average manufacturing wage in the U.S., as of 2019, was nearly four times that of China’s — a gap that has widened due to current wage inflation.

RSM concludes that to address the lack of skilled labor, “businesses must rapidly harness available technological capabilities to increase productivity and efficiency.” 9/7/2021

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