More than half of American CEOs (55 percent) whose companies depend on manufacturing to produce and deliver their goods have plans to reshore their operations – and nearly all of those CEOs (95 percent) say that they will do so this year.
The reshoring trend is also fueling a new modernization wave, with CEOs investing in robotics, automation, and digital workflow tools as they ramp domestic production.
The above findings are the result of the latest quarterly survey on Building American Manufacturing Resilience released by Xometry in a joint effort with Forbes and powered by veteran polling firm John Zogby Strategies.
Tracking CEO and decision-maker sentiment at more than 150 leading companies nationally, the quarterly survey reveals that executives believe supply chain concerns will persist well into the foreseeable future. 89 percent don’t expect supply chain disruptions to abate any time soon, and nearly two-thirds of those CEOs (64 percent) agree that there is enough manufacturing capacity in America to address the world’s supply chain concerns.
“Major legislation like the CHIPS and Science Act, the Inflation Reduction Act and the Infrastructure law helped buoy reshoring in 2022, and we expect that trend to accelerate in 2023 as companies further build supply chain resilience,” said Randy Altschuler, CEO of Xometry. “CEOs recognize that tapping into America’s vast manufacturing infrastructure can help solve most of the world’s supply chain problems. As they bring production back to the States, CEOs are also modernizing shops across the country, deploying digital workflow technologies, investing in new processes, and embracing automation.”
Other key findings from the survey include:
- 72 percent (up from 66 percent in the previous survey) are investing in automation and digital workflows;
- 71 percent (consistent with last quarter) are pouring more money into R&D;
- 58 percent (down slightly from 63 percent) are investing in artificial intelligence;
- 47 percent (up from 42 percent) are investing in robotics.
- Nearly 8 in 10 CEOs say they are stockpiling goods and materials to provide a buffer against disruptions; in the last survey, 77 percent reported shortages in finding components for products.
“The resilience of American manufacturing and enterprise in general is astounding,” said Jeremy Zogby, Managing Partner of Zogby Strategies. “CEOs are optimistic and embracing innovation, which are the most-important factors that will drive resilience and manufacturing in 2023.”