Reshoring Up in 2020, Key to Economic Recovery
November 23, 2020
Despite COVID, reshoring is up in 2020. Job announcements for 2020 are projected to reach 110,000, which will bring the total since 2010 to over 1 million by year’s end.
In 2020 reshoring is exceeding foreign direct investment (FDI) in job creation. Reshoring will continue to be key to manufacturing growth and to U.S. economic recovery in 2021 and beyond. From 2010 through 2019 over 900,000 reshoring and FDI manufacturing jobs have been announced. Allowing for a conservative two-year lag, over 600,000 will have been hired. This figure accounts for 44% of the 1.41 million increase in U.S. manufacturing jobs since the manufacturing employment low in 2010, and 5% of total 12/31/19 manufacturing employment of 12.9 million.
The 2019 combined reshoring and FDI announcements totaled more than 117,000 manufacturing jobs, the third highest pre-revision annual rate on record. Additionally, the number of companies reporting new reshoring and FDI in 2019 was at the second highest annual level in history, 1,100 companies. The numbers demonstrate that reshoring and FDI are major contributing factors to the country’s rebounding manufacturing sector.
The Reshoring Initiative’s 1H2020 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 cumulative data from 2010 through 2019, as well as projections from 2020 1st half data and provides data and analysis in 10 categories, ranging from the number of manufacturing jobs gained, to reasons cited for reshoring, to a breakdown of data by industry, country, region and state.
“We publish this data annually 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 $800 billion/year goods trade deficit, there is potential for much more growth. We call on the administration and Congress to enact policy changes to make the United States competitive again. Our Competitiveness Toolkit is available to help quantify the impact of policy alternatives, including a stronger skilled workforce, competitive corporate tax and regulatory structures and a lower U.S. dollar.”
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