Reshoring Initiative Projects Record-High Job Announcements

In 2021, the private and federal push for domestic supply of essential goods propelled reshoring and foreign direct investment (FDI) job announcements to a record high, according to the Reshoring Initiative. The organization’s 1H 2022 Data Report contains data on U.S. reshoring and FDI by companies that have shifted production or sourcing from offshore to the United States. The report includes projections and analysis for 2022 full year in categories ranging from the number of manufacturing jobs gained, to a breakdown of data by industry, country and state.

Projections from Reshoring Initiative’s 1H 2022 data show reshoring and FDI continuing the gains from 2021. The current 2022 projection of jobs announced is around 350,000 — another record, and up from 260,000 in 2021. If the projection is achieved, 2022 will reportedly bring the total jobs announced since 2010 to over 1.6 million.

Supply chain gaps and the need for greater self-sufficiency are said to continue to be major factors driving reshoring. Destabilizing geo-political and climate forces have brought to light vulnerabilities and the need to address them, the Reshoring Initiative says. Subsequently, great opportunities have arisen for a meaningful rebound of U.S. manufacturing. If the current trajectory continues, it will reduce the trade and budget deficits, add jobs and make the U.S. more self-reliant.

The report also details the following takeaways:

  • The continuing upward trend is due almost exclusively to companies filling supply chain gaps of essential products, including electric batteries, semiconductors, personal protection equipment (PPE), pharmaceuticals, rare earths and renewable energy.
  • Shifting geopolitical forces are keeping supply chain risks in focus, resulting in increases in public awareness, government interventions and actions by individual companies.
  • The Electrical Equipment industry has taken the lead with a significant increase in jobs announced, due to large EV Battery investments.
  • So far, the top three states by jobs announced are Kentucky, North Carolina and Georgia.
  • Preliminary data indicates a continuing surge of reshoring and FDI in 2H 2022.

“We publish this data semiannually to show companies that their peers are successfully reshoring and that they should reevaluate their sourcing and siting decisions,” Harry Moser, founder and president of the Reshoring Initiative, says. “With five million manufacturing jobs still offshore, as measured by our $1.1 trillion/year goods trade deficit, there is potential for much more growth. We also call on the administration and Congress to enact policy changes to make the United States competitive again.”

See the full report, Reshoring Initiative 1H 2022 Data Report: Multiple Supply Chain Risks Accelerate Reshoring, for detailed analysis.


Article source on Modern Machine Shop

More from MTDCNC