•             With the Inflation Reduction Act, Chips Act and Infrastructure Bill, the U.S. government finally is getting started on an industrial policy. 

In 2021 the private and federal push for domestic supply of essential goods propelled reshoring and FDI job announcements to a record high. Projections from Reshoring Initiative 2022 Q3 data show reshoring and FDI continuing these gains. The current 2022 projection of jobs announced is around 350,000--another record, up from 260,000 in 2021. If the projection is achieved, 2022 will bring the total jobs announced since 2010 to more than 1.6 million.

Supply-chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. The risks of a Taiwan-China conflict or China voluntarily decoupling are focusing those concerns. Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them. 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 the U.S. uncompetitive cost structure is not being improved.  A true industrial policy would level the 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 current actions and momentum are a great start, says Harry Moser, founder and president of the Reshoring Initiative. “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.” 

See also: Reshoring Initiative

Technologies: Management

Subscribe to the Newsletter

Start receiving newsletters.