Approximately two of every three North American manufacturing companies surveyed by Thomas reported COVID-19 business disruptions. Interrupted supply chains and delayed product deliveries have increased significantly over the past six months. Business officials across the country are reevaluating cost savings practices such as offshoring in the current business environment. Whether they opt to move their entire operations or seek local suppliers, Tracy, California finds itself in the position to leverage its prime location as the gateway to the Bay Area, a readily available and diverse commercial real estate supply, large and affordable labor force, business friendly environment, new infrastructure, and high quality of life.

Onshoring is Logical Solution
For four decades, companies have offshored manufacturing operations overseas in order to save costs. But the COVID-19 crisis has essentially reversed the race to cut costs as companies were no longer able to supply customers and fulfill contracts. Onshoring has been increasingly embraced as the solution to reducing the risk of future disruptions and delays. Though companies may not be looking to move their entire operations back to the United States at once, gradual reopening of U.S. manufacturing facilities has started to take place. In addition to companies onshoring directly, 28% of suppliers surveyed reported seeking domestic sources. This will create trickle expansion opportunities for current U.S. manufacturers.

Onshoring in Tracy Prior to COVID-19 
Tracy is uniquely positioned to accommodate the reshoring trend and enable growth for companies seeking to leverage the benefits of returning their operation to the U.S. or those onshoring for the first time. Prior to the COVID-19 crisis, Tracy had already built significant momentum drawing new businesses like Thermo Fisher Scientific and Medline. According to Tracy’s City Manager Jenny Haruyama , the City Council had planned for the future with a 30-year Infrastructure Master Plan, providing a roadmap for infrastructure, which includes water, sewer, drainage, roads, parks, public facilities, and fire and police facilities. The City also streamlines the entitlement process with zoning permits approved at staff level.