Reshoring trend at record levels—What’s next?
For the first time in decades, more manufacturing jobs are returning to the United States than are going offshore. The reshoring trend is at record levels, and I need your help to drive more growth!
We need companies to document their actions and do the math while we work to achieve needed policy changes. Here’s an update on reshoring and actions that we can take together to accelerate the trend.
The tide has turned. The combined reshoring and foreign direct investment (FDI) trends grew by more than 10 percent in 2016, adding 77,000 jobs (tying the 2014 record) and exceeding the rate of offshoring by about 27,000 jobs. In comparison, a net annual average of 220,000 jobs were offshored from 2000 to 2003. The 2016 results bring the total number of manufacturing jobs brought back from offshore to more than 338,000 since the manufacturing employment low of February 2010.
This is exciting progress, but there are still huge opportunities and challenges to bringing back all of the 3 million to 4 million U.S. manufacturing jobs still offshore.
Here’s how you can help. First, apply for the first National Reshoring Award. The Reshoring Initiative, in conjunction with the Precision Metalforming Association (PMA), invites companies that have successfully reshored products, parts or tooling made primarily by metal forming, fabricating or machining to apply. There will be one award for buyers and one award for suppliers. The due date for entries is Sept. 1. The awards will be presented in Milwaukee on Sept. 28 at Sourcing Solutions, a popular procurement program hosted by PMA. You do not have to be a PMA member or attend to win. See if your reshoring is eligible!
Tell Washington what policy changes are needed! The Reshoring Initiative and Plante Moran are launching the “Manufacturing Reshoring Survey” to examine the overriding issues and national policy changes needed to impact plant location and sourcing decisions. Past surveys tell us whether companies have reshored or will reshore and why. This survey focuses on how much companies have offshored and what national policy changes would motivate them to reshore X percent of their production.
The Reshoring Initiative’s TCO user data suggests that about 25 percent of offshoring can now be reshored profitably. We need your help to develop the survey data, which we will offer to the administration and Congress to drive policy so the other 75 percent can be reshored. We hope your company will complete the survey.
Help bring back 1 million jobs. The Return One Million Jobs (ROMJ) campaign and the Reshoring Initiative are teaming up to bring back 1 million jobs. ROMJ is organizing a $20 million fund for a major data analytics program to consider all costs of production in the U.S. from all 100,000 companies with offshored production and sourcing. The first job is to inspire all 100,000 U.S. manufacturers with offshore production to participate in the free data analytics project. Find out how your company can participate!
Take advantage of reshoring resources. Here are a few helpful tools to aid in your decision-making process:
- Calculate TCO with the Total Cost of Ownership Estimator.
- Submit your own reshoring case for free publicity.
- Invite the Reshoring Initiative to speak at an industry meeting or customer event.
- Contribute your time or expertise to the reshoring effort.
- Contact us for more information on how to help rebuild U.S. manufacturing.
For the first time probably since the 1970s, there was a net positive flow of U.S. jobs from offshore. Participate in the programs mentioned above and use our data and tools to help your company accelerate reshoring and bring more jobs back to the U.S.!