Geopolitical forces are accelerating the growing trends of reshoring and foreign direct investment (FDI). Over the last decade, an expanding understanding of the routine logistics costs of offshoring drove an upward trend of reshoring. But now, our lack of self-sufficiency in many essential products has been revealed by the COVID-19 pandemic, the risk of China decoupling, domestic supply chain growth for clean energy, and the Russian invasion of Ukraine. Geopolitical risk and the advantages of domestic manufacturing are motivating more and more companies to move production back to the U.S., driving job announcements to record-breaking highs.
In 2021, the private and federal push for domestic supply of essential goods drove reshoring and FDI job announcements to a record 261,000. We forecast about 350,000 job announcements in 2022, which will bring the total jobs announced since 2010 to over 1.6 million. The Reshoring Initiative Data Report discusses the trend and how reshoring will continue to be key to U.S. manufacturing and economic recovery.