JLL reports this month that U.S. based manufacturers are reshoring their overseas operations.

“From General Motors to Intel and US Steel, U.S. companies increasingly have been returning their manufacturing operations stateside.  More than 1,800 companies re-shored their productions last year, according to a report from the non-profit Reshoring Initiative.”

But it’s broader than reshoring. 

“This is more a story of risk management,” says Richard Thompson, international supply chain director at JLL. “The pandemic exposed how fragile our global supply chain was when reliant on one region. A more regionalized model allows companies to be nimbler when problems arise.”

In the Americas, according to JLL’s Industrial Demand 2022 study, the push for the electrification of automobiles, coupled with the necessity to move the production of semiconductors to America’s shores, has spurred activity. According to the report, there are 19.35 million square feet of manufacturing demand on the market. And JLL Research is currently tracking more than 77 million square feet of manufacturing facilities now being built throughout the country.

President Biden’s Build Back Better Act and the 2022 Inflation Reduction Act have also been considerable drivers in companies bringing manufacturing operations back to the U.S., says Trevor Ragsdale, U.S. Head of JLL’s Industrial Occupier Services.