Locational factors and the reindustrialisation process in the USA; Reshoring from China

The main goal of this paper is to analyse the influence of locational factors on the reindustrialisation process in the USA through reshoring from China. The applicability of traditional location theories and their locational factors are also examined here. This paper evaluates the development of labour cost, agglomeration effect, land cost, and raw material cost over recent years as factors encouraging the reindustrialisation process. Transportation cost and the impact of political institutions offer contrasting pictures. While high intermodal freight costs in the US and an appreciating Yuan promote the reindustrialisation process, low ocean shipping costs and enormous business incentives in China weaken the positive effects. All in all, it is concluded that most locational factors have changed in favourable ways for the USA and thus made manufacturing in the USA comparatively more attractive.