Kearney 2024 Reshoring Index: Chinese Imports Fall 20% as USA Self-Sufficiency Rises

Consultancy Kearney released its 11th annual Reshoring Index on April 24, 2024, finding that the USA kept shifting imports away from Asia in 2023 while USA self-sufficiency in manufactured goods rose.

Key findings

• USA imports from 14 Asian low-cost countries and regions fell from about $1.02 trillion in 2022 to $878 billion in 2023, a drop of $143 billion.
• Imports from mainland China fell 20 percent, or $105 billion.
• Mexico passed China as the largest exporter to the USA for the first time since the index began in 2013.
• Kearney’s USA self-sufficiency index, which compares goods made in the USA for the USA market against imports, rose 5 percent from 2022 to 2023.

The catch

Kearney says China is rerouting exports through Vietnam, India and Thailand, which in turn run growing surpluses with the USA. Domestic factories still face a shortage of skilled workers, high labor costs and infrastructure gaps, and USA manufacturing gross output stayed flat.

“US companies and consumers are starting to truly ‘buy American.’”

Patrick Van den Bossche, Kearney

FAQ

What does the index measure?

Imports of manufactured goods from 14 Asian low-cost countries compared with USA manufacturing output.

Did Chinese imports fall?

Yes, by 20%, or $105 billion, in 2023.

Is USA manufacturing growing?

USA self-sufficiency rose 5%, but manufacturing gross output was essentially flat.