For decades, American factories have shuttered as production moved overseas in search of cheaper labor and larger supplier networks. Between 1997 and 2022, the number of U.S. manufacturing firms and plants dropped by 25%, according to McKinsey & Co.. Jobs that once employed nearly 20 million Americans now account for just 12.7 million workers.
Globalization, trade agreements like the North American Free Trade Agreement, and China's entry into the World Trade Organization in 2001 opened the door to cheaper production abroad. Lower labor costs, weaker environmental regulations, and robust supplier networks in countries like China and Vietnam made overseas manufacturing an attractive option for many U.S. companies.
