Reshoring could contribute 37,900 jobs and £1.7bn annually to the Yorkshire and Humber economy over the next decade, according to accountancy firm EY.
But it warned the UK faces stiff competition from European countries and the US.
Stuart Watson, senior partner at EY in Yorkshire, said the region has significant potential to attract reshored activity over the coming years.
He added: “Offshoring in the 80s and 90s saw a dramatic reduction in British manufacturing and a shift to services industries that led to a restructuring of the British economy.
“Some regions saw rapid growth and wealth creation, others suffered high unemployment. But the economics underpinning this trend appear to be reversing, and present Yorkshire and the wider UK with a once-in-a-generation opportunity.
“While increasing wages in developing countries are eroding their labour cost advantage, there are many more factors driving business to choose our shores.
“The desire to guarantee quality and the imperative to reduce time to market are increasingly important drivers of location decisions.”
Reshoring has the potential to inject £15bn into GDP and create more than 315,000 jobs in the UK, according to the report.
Yorkshire came second out of 11 UK regions analysed in terms of potential job creation via reshoring, behind only the North West.
EY said certain sectors including aerospace, defence, automotive, petroleum products and clothing, could see a high proportion of reshoring given the right incentives.
Steve Wilkinson, of EY, said: “They will predominantly be capital intensive, serving the European market.”