McKinsey & Company examines what it would take for the United States to rebuild domestic manufacturing capacity. The paper finds that replacing exposed imports could require about $2 trillion in capital, while existing factory slack would add only $660 billion of output.
Ramping up manufacturing in America?
McKinsey & Company
Rebecca Anderson
Research
61 Pages
Key Takeaways
Import Exposure Is Large: The US imports $3 trillion in manufactured goods annually, with about 25% considered Achilles’ heels across criticality and concentration risks.
Capacity Gaps Persist: Running factories at peak usage could add $660 billion in output, but only offset about 6% of exposed imports.
Capital Needs Are Heavy: Building capacity for exposed products and upstream inputs could cost about $2 trillion, equal to roughly 6% of US GDP.
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