McKinsey Global Institute

The COVID-19 pandemic has underscored manufacturing’s role in providing products that are critical to health, safety, national security, and the continuity of multiple industries. It has also revealed the extent to which global supply chains are exposed to shocks and disruptions. All of this has occurred at a moment when new technologies, process innovations, input trends, and demand patterns are reshaping manufacturing worldwide, creating opportunities in many cases.

These events have deepened the urgency for the United States to build on an agenda that recognizes the importance of domestic manufacturing for a strong economy and national resilience, both today and in the future. But it will be important to pursue this agenda with a clear view of global competition, since many countries, including China, are continuing to expand their capabilities and compete on dimensions beyond labor costs.

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