Reshoring and foreign direct investment (FDI) cases have led to over 182,000 job announcement in the first half of this year, according to the Reshoring Initiative 1H 2023 Report. Reshoring accounted for 59% of these jobs, while FDI contributed 41%. The Reshoring Initiative anticipates over 300,000 total jobs announced by the end of 2023.
The report projects that the electrical equipment, appliances & components, and computer & electronic products industries will be responsible for 64% of total jobs announced in 2023, pushed by EV battery and semiconductor investments. Since 2010, close to 2 million manufacturing jobs are expected to have been brought back to the U.S. by the end of 2023.
“To put recent announcement rates into perspective, it took 11 years to return the first million jobs and only 3 years to return the second million,” according to the report.
Some of the top reported factors for reshoring and FDI include government incentives, eco-system synergies, proximity to customers/market and skilled workforce availability. Kentucky, Georgia and South Carolina are the top three states with the highest job announcements during the first half of 2023. Most reshoring jobs are coming from Asia, and FDI jobs are mostly coming from Western Europe and Asia.
From 2010 to 2023, Mexico has announced over 50,000 nearshoring jobs and accounts for 80% of nearshoring cases.
Preliminary Q3 rates have slowed compared to the first half, possibly leading to a lower full-year total. However, according to the report, “Even a lower figure of 300K would be up about 22% from 2021’s record and almost 100% from 2020.”
The Reshoring Initiative advocates for bringing manufacturing back to the U.S. by providing resources and tools like webinars, a searchable database and case studies.
