Globalism in Retreat

Of all the sectors that were hit hard by the Great Recession, perhaps none had a bleaker prognosis than manufacturing. The already-declining sector lost another two million jobs—and whether those positions had been eliminated or shipped overseas, it looked unlikely that they’d ever come back. But the latest Atlantic cover story suggests that the tide may be turning: American manufacturers large and small are now beginning to bring jobs home. It’s one sign of a broader embrace of local commerce propelled by changing public attitudes, and it’s emerging in myriad ways around the globe. Together, these indicators point to a seismic shift: The world at large is choosing localism over globalism.

Many of the factors encouraging insourcing today are business-driven. The wages of manufacturing hubs abroad like China have risen rapidly in the past decade, narrowing the cost benefits for U.S. companies. American businesses are also growing more attuned to stateside advantages such as the protection of intellectual property and the increased flexibility of managing workers and supply chains close to home. As the Atlantic story notes, collaboration and feedback between designers and manufacturers has allowed General Electric to cut costs, reduce time-to-market, and…