Companies that have tried to bring production back into the United States often face labor challenges. They report difficulty finding workers who can pass drug tests, do basic math needed for the job, and come to work regularly. Skeptical folks will ask if the company was expecting all that for minimum wage. The upshot of the discussion: labor costs for good, reliable workers are not as low as one would think looking at the minimum wage.
Electricity costs have been rising for industrial users in the United States, despite steeply declining natural gas prices and moderately declining coal prices. One would think that cheaper fuel for electric utilities would translate into lower electricity prices, but increasing expenditures for renewable power have more than offset fuel savings.
The regulatory environment is in many ways less favorable for businesses in the United States, especially regarding land use and environmental rules. Offsetting these problems, though, is the much lower level of public-sector corruption in America. These are broad generalities, of course, but companies are aware of these issues as they dive into analysis of reshoring.
Finally, many companies are finding that their overseas markets are growing faster than domestic markets. Last year, for example, emerging economies grew by five percent inflation-adjusted, while the United States grew by just two percent. Those foreign plants make more sense when they also serve fast-growing countries.