Reshoring

Reshoring is when a company moves manufacturing or operations back to its home country after previously outsourcing them abroad. Companies typically outsource to countries with cheaper labor, but they may reshoring to reduce shipping costs, improve quality control, or respond to political pressure and tariffs. You'll hear about reshoring in economic news and earnings calls, especially when governments offer tax incentives to bring jobs back. It matters to investors because reshoring can affect a company's profit margins, supply chain reliability, and stock performance. For example, if TechCorp moves smartphone assembly from Southeast Asia back to the U.S., it might face higher labor costs but gain faster delivery times and less geopolitical risk.