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.