Reshoring Initiative 2014 data report emphasizes positive job trends

Chicago-based Reshoring Initiative®, an organization committed to helping manufacturers recognize the profit potential of using local sourcing and production, has published its annual data report on reshoring trends. According to the report, more than 60,000 manufacturing jobs were brought to the U.S. by reshoring and foreign direct investment (FDI) combined in 2014, representing a 400 percent increase since 2003.

With only 30,000 to 50,000 jobs being offshored to other countries in 2014, the resulting net gain of 10,000 or more jobs per year represents a shift in the right direction. By comparison, in 2003 the U.S. lost about 140,000 manufacturing jobs to offshoring. The steady decrease in the number of jobs lost, capped by a net gain last year, is building confidence that reshoring and FDI are important contributing factors to the country’s manufacturing rebound.

Data for this report comes from the Reshoring Initiative’s Reshoring Library of more than 2,000 published articles, privately submitted reshoring case studies, and some other privately documented cases. The report provides data and analysis in 13 different categories, including the number of manufacturing jobs lost to offshoring; reasons cited for reshoring; and a breakdown of data by industry, country, region, and state. It also includes an international summary of cases reshored to other countries.

The reasons companies gave for reshoring and FDI include government incentives, the skilled workforce, capitalizing on the value of a Made in USA label, and automation. Reasons cited against offshoring include lower quality, long lead times, high freight costs, and rising wages.

The data also indicates that reshoring was strongest in the Southeast and Texas, a trend consistent with The Boston Consulting Group’s (BCG) forecast for those areas to lead the way in becoming competitive with China for the manufacture of products to be sold domestically. Much of this is attributed to the trend for companies to build “greenfield” factories in states with lower wages, lower taxes, and right-to-work laws.

“With 3 to 4 million manufacturing jobs still offshore, we see huge potential for even more growth and hope this data will motivate more companies to re-evaluate their sourcing and siting decisions,” said Harry Moser, founder and president of the Reshoring Initiative.

To read the complete report, visit www.reshorenow.org/content/pdf/2014_data_summary.pdf