Reshoring and New Geography

COVID-19 exposed fragile supply chains and sparked a geographic reversal. Companies began reshoring — bringing production closer to home markets.

Policy is now reinforcing that shift. The US CHIPS Act commits tens of billions of dollars to build domestic semiconductor factories and reduce concentration risk. Friendshoring goes further, relocating supply chains to close allies rather than the cheapest locations, which is why Mexico's manufacturing is booming. Geography is reasserting itself, proving distance never truly stopped mattering.