Reshoring

For decades, manufacturers moved factories to countries with lower labor costs. Reshoring reverses that, usually because shipping delays, tariffs, geopolitical risk or quality problems have made distance expensive.

Automation is the usual enabler. A US or German plant cannot match overseas wages, so the business case for bringing a line home often depends on running it with fewer people and more robots. A carmaker reopening a domestic parts plant with robotic welding cells is a typical case.

The IFR cites reshoring and nearshoring as one of the main drivers behind its forecast of rising robot demand through 2029, alongside labor shortages in manufacturing.