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Reshoring Initiative 2021 Data Report: Essential Product Industries Drive Job Announcements to Record High

June 8, 2022

reshoring-initiative-jobs-compared-to-FDIIn 2021 the private and federal push for domestic supply of essential goods propelled reshoring and foreign direct investment (FDI) job announcements to a record 261,000, according to a recently released report from the Reshoring Initiative.  This brought the total jobs announced since 2010 to over 1.3 million. For the second year in a row, reshoring exceeded FDI by 100 percent, in contrast to 2014 thru 2019 when FDI exceeded reshoring. Additionally, the number of companies reporting reshoring and FDI set a new record of more than 1800 companies. The report discusses the trend and how reshoring will continue to be key to U.S. manufacturing and economic recovery.

More takeaways:

•             The year-over-year increase is due almost exclusively to companies filling supply-chain gaps of essential products including electric batteries, semiconductors, PPE, pharmaceuticals, rare earths and renewable energy.

•             The computer and electronics industry has seen the largest jump in percent of jobs, due to semiconductor/chip investment. 

•             Reshoring from Asia is about 10X that from Western Europe.

•             Preliminary data indicates a continuing surge of reshoring and FDI in 2022. 

Reshoring was the key to U.S. manufacturing and economic recovery in 2021, the report surmises. The Biden administration actions to fix key supply chains contributed substantially to the 2021 and forecast 2022 results but are short-term fixes.

“We see the administration applying tourniquets rather than addressing the underlying issue of U.S. manufacturing cost being uncompetitive,” the report states. “The Reshoring Initiative offers the Biden administration our help in developing essential policies. Our Competitiveness Toolkit is available to help quantify the impact of policy alternatives, including a stronger skilled workforce, competitive corporate tax rates and a lower U.S. dollar.”


See also: Reshoring Initiative

Technologies: Management


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