Reshoring Mentions Spike in Earnings Calls - Modern Distribution Management

Log In

Reshoring Mentions Spike in Earnings Calls

Mentions of reshoring were substantially more common in 1Q earnings calls compared to a year earlier. What are the factors driving the hype?
Shipping-Suriyapong Thongsawang via Getty Images Pro, Canva

It’s no secret that many companies are looking to shorten their supply chain by moving production from China and other overseas production hubs nearer to the countries where their goods are sold. 

Mentions alone of “reshoring” during S&P 500 earnings calls in the first quarter of 2023 were up 128% compared to the same quarter last year, according to a CNBC report which referenced analysis of earnings call transcripts by the Bank of America.

UBS bank also surveyed 1,600 executives and found 70% of U.S. executives intend to move parts of the supply chain closer to their customers, CNBC reported.

“This is in stark contrast to the lack of mentions throughout the 2010s as low growth/inflation, global supply chains and ultimately globalization were in full swing,” wrote Strategas Securities Managing Director Ryan Grabinski, according to CNBC. 

So, what’s driving the reshoring and nearshoring conversation? 

3 Key Factors Driving an Uptick in Reshoring and Nearshoring

1. Desire for a More Resilient Supply Chain

The COVID-19 global pandemic and the supply chain disruptions that followed suit jump-started the move of production from overseas to North America as companies struggled to keep a handle on supply. Pandemic-related shutdowns in the production hubs like China further exasperated the problem. 

Now, distributors and manufacturers look to rework their network to create a more resilient supply chain that can withstand future shocks. 

2. Customer Demand Fulfillment

In the world of next- and same-day shipping, U.S. consumers are more accustomed to fast fulfillment. To meet customer demand, companies eye relocation of manufacturing and distribution operations to keep their production closer to the consumer. 

3. Labor Cost Increases

As labor rates increase, companies re-evaluate overseas production hubs, such as China, which may no longer be the lowest-cost provider.

In 2022, U.S. reshoring and foreign direct investment job announcements were at the highest rate ever recorded, according to a March 24 announcement from the Reshoring Initiative.

In an MDM podcast late last year, James Dorn, CEO of Dorn Group, a strategic advisory for manufacturers and distributors, speculated that the reshoring trend would help revive the rural communities in the U.S. which were “devastated decades ago, when manufacturing went overseas.” 

In August of 2022, Baird’s Equity Research unit released a report which forecasted that industrial distributors have a $15 billion incremental revenue opportunity over the next decade via the benefits of manufacturing reshoring impacts.

Don’t miss MDM’s two-part series which dives deeper into the factors and benefits of nearshoring:

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.