Reshoring

Reshoring is when a company moves manufacturing or operations back to its home country after previously outsourcing them abroad. You'll hear this term in economic news and earnings calls, especially when companies cite rising labor costs overseas, supply chain disruptions, or government incentives as reasons to bring production home. It matters because reshoring can signal confidence in the domestic economy and potentially create local jobs, but it also means higher costs for companies—which might affect their profits. For example, if TechCorp had been making phones in Southeast Asia for years but decides to build a new factory in Ohio to reduce shipping delays and qualify for tax credits, that's reshoring.