What is "re-shoring" and why US manufacturers are bringing manufacturing jobs back home

Reshoring, also referred to as onshoring, is a currentIncreased prices of raw materials. Foreign countries
trend in American business that is quickly changing theused lower prices to encourage established
way companies do business on a global level. Asinternational companies to set up facilities, but once the
companies who stayed away from off-shoring theircompanies built those facilities, the prices for those
manufacturing will tell you, the benefits to producingmaterials steadily increased.
and manufacturing goods in the United States areIncreased labor costs. Workers, such as those in China,
extensive. However, in 2010 more and morehave demanded higher wages, adding costs to
companies who thought going offshore for theirproduction abroad.
production are changing their minds and bringing jobsIncreased shipping costs. As shippers saw greater
back home to America.potential for profits, they have increased their prices.
 Additionally, the costs of fuel have made this process
Here's a look at why this is happening.more expensive.
  
What is Reshoring?Long-distance complications
Over the past few decades, factories, and theAnother issue that plagues foreign production is the
manufacturing jobs that go with them, have beendifficulty of doing business with a facility that is so far
moving abroad to countries in Asia, Latin America, andaway. For local companies producing components
Africa where labor and materials were cheaper.abroad, the obstacles are numerous:
However, over the past decade, there has been aTime differences that make communication challenging
reversal in this trend as companies are buildingInternational trips to meet with producers
factories in the United States or updating andIssues with intellectual property protection which can
reopening existing factories. The movement out of thisbe harder to enforce abroad
country was called "off-shoring," which is the basis forDelayed product delivery
the names "reshoring" and "onshoring" for the current 
phenomenon.Financial incentives
 Despite the rising costs and complications of
Why are companies reshoring?conducting business with a partner half-way around
When American companies began to produce goodsthe globe, businesses might still choose to produce their
abroad, they did so because the costs of materialsgoods abroad if there were not additional financial
and labor were lower, allowing companies to produceincentives for producing goods here. These incentives
goods for less money and leaving more room forcan be direct, such as those offered by the
competitive prices and profits. However, the reality ofgovernment in the form of tax breaks for companies
the situation has changed due to changes in the globalthat do business in the United States.
marketplace, unforeseen issues, and the difficulties of 
doing business from a great distance. Some of theThe benefits can also be indirect. Companies who
reasons that companies have chosen to re-shorestruggle with inconsistent quality between shipments
include increased costs, inconveniences associatedfrom the same manufacturer may pay a lower cost
with distance, and financial incentives.per unit but if they have to throw the inferior products
 away, that price rises overall. If they sell the inferior
Increased costs of offshore productionproducts, the brand's image might suffer, costing the
As the economic climate has changed over the pastcompany money.
decades, it has become more expensive to produce 
goods abroad than it was when companies firstAlso, a great deal of capital is tied up each time a
decided to do so.company places a large order abroad, and they are
 unable to change that order or to use the money for
The prices have increased in almost every regard,other opportunities that arise. This makes it harder to
including:respond to market demands or shifts.