US Reshoring Reaches Another All-Time High
According to the Reshoring Initiative Q1 2023 data report, manufacturing job announcements continue to outpace recent records, which could accelerate further should a true industrial policy be implemented.
Projected manufacturing job announcements per year, reshoring and FDI, from 2010-2023. Photo Credit: Reshoring Initiative
According to the recently released Reshoring Initiative Q1 2023 data report, reshoring and direct foreign investment (FDI) manufacturing job announcements continue to outpace recent records, adding 101,500 jobs in Q1 2023. Top takeaways cited include:
- Quarter one reshoring and FDI jobs announced in 2023 are up 11% from 2022.
- If the current rate continues, reshoring and FDI will total more than 400,000 jobs in 2023.
- Electrical equipment remains the top industry due to continuing large investments in electric vehicle (EV) batteries. The industry moved from 42% of total jobs announced in 2022 to 47% in Q1 2023.
Supply chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. The risks of a Taiwan-China conflict or China voluntarily decoupling are focusing those concerns. Destabilizing geopolitical and climate forces have also brought to light U.S. vulnerabilities and the need to address them. The White House responded with the Inflation Reduction Act, Chips Act and Infrastructure Bill, offering some direction and financial security to the companies and industries intent on filling the gaps. These government actions are necessary in the short run but are not sufficient since they do not improve the U.S.’ uncompetitive cost structure. A true industrial policy would level the cost playing field via comprehensive actions such as massive skilled workforce investments, a 25% lower USD and retention of immediate expensing of capital investments.
“The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40%, [which is] 5 million jobs,” Harry Moser, founder and president of the Reshoring Initiative, says. “Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant and resilient.”
Read the full report at “Reshoring Initiative 2023 Q1 Data Report: Reshoring Rides the EV Battery Wave, Taking Aim for Another All-Time High.”
For more information, read “Reshoring Initiative Reports Another Stellar Year” and “Record Reshoring Rates Reported in 2022.”
