‘Reshoring’ Leads to Gain of 10K Manufacturing Jobs
The U.S. saw a net migration of at least 10,000 manufacturing jobs back to the country this past year, according to the Reshoring Initiative.
The group’s annual data report for 2014 said more than 60,000 manufacturing positions either returned to the U.S. from overseas or stemmed from foreign direct investment. Estimates showed between 30,000 and 50,000 American jobs were transferred overseas last year.
In addition, the analysis showed a 400 percent increase in reshored jobs last year compared to 2003, when the country lost a net 140,000 positions to offshoring.
The group called the numbers “a shift in the right direction.”
“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,” said Reshoring Initiative founder Harry Moser.
Companies cited several top reasons for returning jobs to the U.S., led by government incentives, a skilled workforce, the value of promoting products that are “Made in USA” and automation.
By contrast, businesses said reduced quality, longer lead times, higher freight costs and rising wages discouraged moving jobs abroad.
The group said the reshoring numbers were strongest in Texas and the Southeast, where companies tend to develop new factories in states with lower wages and taxes, as well as those with “right-to-work” laws on the books.
The Reshoring Initiative compiled data for the report from published articles, privately submitted case studies and other privately documented cases.