The labor cost differential between the U.S. and other countries has been shrinking. As the gap narrows, it's becoming more economically viable to run labor-intensive operations in the U.S., not just in manufacturing but in sectors like customer service, logistics, and data processing. Ex: The rise of customer service centers in states like Utah. When you factor in the relative ease of training a domestic workforce and the advantage of an American accent for customer service interactions, along with the shrinking cost differential, on-shoring will accelerate. Two major trends have played a role in this narrowing cost differential: 1. **Wage Growth in Developing Economies**: Southeast Asia, Eastern Europe, China, and India have experienced disproportionate wage growth compared to the US due to economic development and a decelerating population growth (and in the case of Eastern Europe, an accelerating population decline.) 2. **Automation and Technological Advancements**: Increasing technology has decreased the quantity of labor needed per unit of output, diminishing the significance of any labor cost savings in all industries.