Reshoring and foreign direct investment (FDI) manufacturing job announcements are continuing to outpace recent records, the Reshoring Initiative reported, adding 101,500 jobs in 2023 Q1. If the current rate continues, the organization added, new job announcements will reach over 400,000 by year-end. The cumulative number of jobs brought back since the manufacturing low in 2010 would reach two million.
Source: The Reshoring Initiative
Reshoring continues to outpace FDI by 62 percent vs. 38 percent.
Geopolitical unrest and U.S. incentives for manufacturing are two drivers toward onshore manufacturing. Other factors include efficiency, improving local supply chains, innovation and consumer preference for Made in USA.
The risks of a Taiwan-China conflict or China voluntarily decoupling are among manufacturers’ top concerns. “Destabilizing geopolitical and climate forces have brought to light our vulnerabilities and the need to address them,” according to the Reshoring Initiative. “The White House responded with the Inflation Reduction Act, Chips Act, and Infrastructure Bill, offering some direction and financial security to the companies and industries intent on filling the gaps. These government actions are necessary in the short run but are not sufficient since they do not improve the U.S.’ uncompetitive cost structure.”
An industrial policy that focuses on leveling the cost playing field via comprehensive actions such as massive skilled workforce investments, a 25 percent lower USD and retention of immediate expensing of capital investments would help, the Initiative reported.
“The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40 percent, 5 million jobs. Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant and resilient,” said Harry Moser, founder and president of the Reshoring Initiative.
Reshoring Initiative reporting contains data and analysis on trends in U.S. reshoring announcements by U.S. headquartered companies and FDI by foreign companies that are shifting production or sourcing from offshore to the U.S.
Author: News Desk
The EPSNews news desk compiles information relevant to the electronics supply chain, including industry reports and statistics; logistics data, standards, governance and company announcements; personnel notifications and other items of note.
