What is the main reason US companies are moving their factories overseas?

The main reason US companies are moving their factories overseas is primarily due to lower labor costs. In many countries, labor is significantly cheaper than in the United States, allowing companies to reduce production costs and increase their profit margins. By relocating manufacturing to regions where labor costs are lower, businesses can maintain a competitive advantage in pricing their products, particularly in industries with tight profit margins.

While access to better technology, abundance of natural resources, and government incentives can influence decisions about where to establish manufacturing facilities, the overarching and most compelling factor that drives the outsourcing of jobs is the prospect of significantly reducing costs associated with labor. This decision is often essential for companies aiming to maximize efficiency and remain competitive in a global market.