Last year was a challenging year for small businesses, with high interest rates and low unemployment. Constrained monetary policies made borrowing more expensive, and the tight labor market increased labor costs. The American consumer, who accounts for most small business revenue, began to show signs of exhaustion, leading to a flattening of discretionary spending in the latter half of 2023. As interest rates hold the key to employment, the housing market, and spending, Kapitus predicts a continued trend toward the repatriation of manufacturing to the United States and its near-shore allies in 2024. This trend will benefit most U.S. manufacturers as businesses seek shorter and more reliable supply chain alternatives. The US government is promoting manufacturing repatriation through the 2021 Infrastructure Act and 2022 Inflation Reduction Act, integrating new technologies, and easing the tightening cycle. 2024 is expected to be a better year for US manufacturers.