The pandemic forced companies to reckon with the cost of producing and shipping goods overseas. Many small businesses that are following multinational counterparts, like Ford Motor, First Solar, Intel and Lego, that have recently announced new U.S. plants as a solution to global snarls that left them without access to key components and empty shelves when consumer demand seemed insatiable, the New York Times reported. The experience has been challenging for small-business owners, many of whom found themselves pushed to the back of the supply line because they did not have the order size, capital or relationships needed to take priority over big firms. And even if they could, the costs of shipping containers, which tripled from pre-pandemic levels, was often prohibitive. Supply chain pressures eased over the summer, but the Federal Reserve Bank of New York’s global supply chain pressure index still stands near record highs, and a recent Goldman Sachs survey showed that delays and backlogs remained a top economic concern for small-business owners. With no end in sight to delays and backlogs, building domestic supply chains from scratch is becoming more appealing and feasible. Small businesses are putting a priority on proximity to their customers so they can react to market demands in real time, and are leaning into a resurgent pride in “made in America” goods.
