Read our full analysis for a more in-depth look at these trends.
Battle of the titans: Reshoring vs. friendshoring
Geopolitics are reshaping supply chains, prompting sectors to re-evaluate the risks and benefits of reshoring and friendshoring.
June 2025
Key takeaways
- Although U.S. manufacturing accounts for only 8% of total employment, the Reshoring Initiative found reshoring created 20% of manufacturing jobs in the last 15 years, with half of these created in the past five years, largely due to policy initiatives.
- A BofA Global Research proprietary survey found only 20% of respondents expect significant reshoring, while 40% call for mild relocation to the U.S. within select sectors including electronics, biotechnology, and metals and mining. These sectors are more capital- than labor-intensive, and are expected to take one to three years to complete any reshoring initiatives.
- Reshoring also faces increased risks from lack of qualified labor within the U.S. Therefore, nearshoring, or friendshoring, appears much more likely to benefit from tariffs this time around, according to BofA Global Research, and Mexico is considered to be a net beneficiary from the push from cost efficiency to geopolitical risk management.
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