The push in the US last year, from both government and the private sector, to fortify domestic supply of essential goods propelled reshoring and foreign direct investment (FDI) job announcements to a record high. Projections from Reshoring Initiative’s 1H 2022 data show reshoring and FDI continuing these gains.
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 bring the total reshored jobs announced since 2010 to over 1.6 million.
“Supply chain gaps and the need for greater self-sufficiency continue as major factors driving reshoring. The possibility of a Taiwan-China conflict and the threat of China decoupling are focusing those concerns. Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them. Subsequently, great opportunities have arisen for a meaningful rebound of U.S. manufacturing,” the Reshoring Initiative states in a release.
The Reshoring Initiative’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.
“We publish this data semiannually to show companies that their peers are successfully reshoring and that they should reevaluate their sourcing and siting decisions,” said Harry Moser, founder and president of the Reshoring Initiative. “With 5 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.”
Additional takeaways from the report include:
- The continuing upward trend is due almost exclusively to companies filling supply chain gaps of essential products, including electric batteries, semiconductors, PPE, pharmaceuticals, rare earths and renewable energy.
- Shifting geopolitical forces are keeping supply chain risks in focus, resulting in increases inpublic 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.
Reshoring Initiative was founded by 55-year manufacturing industry veteran and retired President of GF Machining Solutions, Harry Moser. Additional information on the Reshoring Initiative available at www.reshorenow.org.