“America First” might sound great in principle… but is it great in practice? While politicians and businesses are pushing for more domestic manufacturing to create millions of new jobs, economists and companies warn that “Made in the USA” will come with a downside — higher labor and input costs, which will trickle down to Americans in the form of higher prices.

• Both presidential candidates, Donald Trump and incumbent Joe Biden, have emphasized the importance of buying American-made products during their campaigns.
• At the same time, employers are increasingly favoring reshoring given the tenuous geopolitical situation overseas, as well as rising manufacturing costs in countries like China.

Manufacturing momentum: A new study says the US manufacturing industry could need 3.8M workers by 2033 to accommodate the growth. The sector returned to growth for the first time in 16 months, as indicated by the ISM manufacturing index (which measures manufacturing economic activity), surprising analysts with its highest reading since Sept. 2022.