Data from the Reshoring Initiative show a 15 percent increase in manufacturing jobs over the previous high
December 14, 2022
SARASOTA, Fla.—Efforts by companies to bring manufacturing operations to the U.S. are paying off in a record number of manufacturing jobs resulting from reshoring and foreign direct investment (FDI), according to a December release from the Reshoring Initiative that highlights its third quarter data for 2022.
The Reshoring Initiative’s third quarter data showed the highest rate of reshoring and FDI job announcements ever recorded—about 15 percent above the previous record attained in the first quarter of 2022. As D2P went to press, the Initiative was projecting some 350,000 jobs produced by reshoring and FDI in 2022. If achieved, that total would surpass the previous record of 260,000 reshoring and FDI job announcements in 2021, according to the release.
Reshoring Initiative President and Founder Harry Moser attributed 2021’s record total to “the private and federal push for domestic supply of essential goods.” He said projections indicate that reshoring and FDI will continue to grow.
“Private and federal entities are investing in skilled workforce, addressing one of the leading barriers to success,” the Reshoring Initiative said in its release. “With the Inflation Reduction Act, Chips Act, and Infrastructure Bill, the U.S. Government is finally getting started on an industrial policy.” However, it added that a “more comprehensive plan is needed.”
“These government actions are necessary in the short run but are not sufficient, since the U.S. uncompetitive cost structure is not being improved,” according to the release. “A true industrial policy would level 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.”
The Reshoring Initiative’s 2022 Q3 Data Report includes data on U.S. reshoring and FDI by companies that have shifted production or sourcing from offshore to the United States. In tabulating the number of manufacturing job announcements resulting from reshoring and FDI, the Reshoring Initiative includes “work brought to an OEM’s assembly plant and work newly outsourced to the domestic supply chain,” the organization said in its 2022 Q3 Data Report.
“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 Moser, in a statement. “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.”
The report includes projections and analysis for 2022 and beyond.
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