Reshoring and foreign direct investment manufacturing job announcements are up 11% in the U.S. for the first quarter of 2023. PHOTO by Pexels.
Reshoring and foreign direct investment (FDI) manufacturing job announcements in the U.S. are continuing to outpace recent records, adding 101,500 jobs in 2023 Q1.
- 2023 Q1 reshoring + FDI jobs announced are up 11% from 2022.
- If the current rate continues, reshoring and FDI will total over 400,000 jobs in 2023.
- Electrical Equipment remains the top industry due to continuing large investments in EV batteries. The industry moved from 42% of total jobs announced in 2022 to 47% in 2023 Q1.
Supply chain gaps and the need for greater self-sufficiency are setting the stage for the current upward trend in reshoring to the U.S., according to the Reshoring Initiative. The risks of a Taiwan-China conflict or China voluntarily decoupling are focusing those concerns. In the U.S., the White House has responded with the Inflation Reduction Act, Chips Act and Infrastructure Bill, offering direction and financial security to the companies and industries intent on filling the gaps.
While these government actions are necessary in the short run they’re not sufficient since they do not improve the U.S.’ uncompetitive cost structure, argues the Reshoring Initiative, a U.S. industry group focused on bringing jobs back to the U.S., in a statement released recently. It adds that a true industrial policy would level the cost playing field via comprehensive actions such as massive skilled workforce investments, a 25% lower USD and retention of immediate expensing of capital investments.
“The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40%, 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.