Expansion Management

Reshoring, FDI Bringing Back Jobs Says Industry Group

April 28, 2015

The 60,000 manufacturing jobs were brought to the U.S. by reshoring and Foreign Direct Investment (FDI) in US is a 400% increase since 2003

Adrienne Selko

More than 60,000 manufacturing jobs were brought to the U.S. by reshoring and foreign direct investment (FDI) combined in 2014, according to a new report from The Reshoring Initiative.

The number represents a 400% increase since 2003.

With only 30,000 – 50,000 jobs being offshored to other countries in 2014, the resulting net gain of 10,000 or more jobs per year represents a shift in the right direction.

By comparison in 2003, the U.S. lost net about 140,000 manufacturing jobs per year to offshoring.

“We publish this data annually to show companies that the trend in manufacturing in the United States is to source domestically,” said Harry Moser, president of the Reshoring Initiative. “With 3 to 4 million manufacturing jobs still off shore, we see huge potential for even more growth and hope this data will motivate more companies to reevaluate their sourcing and siting decisions.”

Why are companies returning to the U.S. and others investing here? According to the group the companies said that government incentives, the skilled workforce, capitalizing on the value of a Made in USA label, and automation were the top reasons.

However companies said that lower quality, long lead times, high freight costs and rising wages as reasons against offshoring.

Reshoring was strongest in the Southeast and Texas. Much of this is attributed to the trend for companies to build “green-field” factories in states with lower wages, lower taxes and right-to-work laws, the group said.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.