Reshoring and Industry 4.0: How Often Do They Go Together?

The paper focuses on the link between reshoring strategies and investments in Industry 4.0 technologies. Data are obtained through secondary sources, and regard 840 reshoring initiatives realized in U.S. and Europe. Results show that reshoring companies do not invest in automation more than other manufacturing companies, and investments are lower in labour-intensive sectors. Industry 4.0 technologies are more often adopted by reshoring companies for cost control reasons rather than for quality control ones. The analysis of the governance mode shows that firms prefer to automate in house rather then select external suppliers with automated facilities. Lastly, results indicate that automation characterizes a limited proportion of reshoring, and has not been so far a key enabler of relocation.