According to a new report from The Reshoring Initiative®, despite COVID, reshoring numbers were up in 2020. Reshoring and foreign direct investment (FDI) job announcements for 2020 were 160,649, bringing the total jobs announced since 2010 to over 1 million (1,057,054). Also of significant importance, reshoring exceeded FDI by nearly 100%, the first beat for reshoring since 2013. Additionally, the number of companies reporting new reshoring and FDI set a new record of 1,484 companies. The initiative asserted that reshoring will continue to be key to U.S. manufacturing and economic recovery in 2021 and beyond.
The Reshoring Initiative’s 2020 Data Report contains data on US reshoring and FDI by companies that have shifted production or sourcing from offshore to the United States. The report includes data for 2020, cumulative data from 2010 through 2020, as well as projections for 2021. The report provides data and analysis in 10 categories, ranging from the number of manufacturing jobs gained, to reasons cited for reshoring, to a breakdown of data by industry, country, region and state.
Top takeaways from the report include:
• In 2020, US reshoring set a record of 109,000 jobs and outpaced FDI for the first time since 2013. COVID uncertainty has resulted in companies emphasizing operations in their home countries.
• In order to make the U.S. less vulnerable, there are now national initiatives to shorten and close supply chain gaps for essential products. The following industries are most likely to benefit: PPE, medical, tech and defense. Medical equipment and PPE are the first responders of new reshoring and FDI, with cases up nearly 2000% and jobs up 400% from 2019.
• President Biden is prioritizing reshoring highly but applying different methods than President Trump. The gaps in Biden’s plans need to be addressed in order to achieve his goal of returning 5 million more jobs.
• There is continued growth in efforts by MEPs, EDOs and states to enable reshoring. The Reshoring Initiative is deeply involved in these efforts with its Import Substitution Program (ISP). As a measure of corporate interest, the demand for this service is more than 10 X the rate of 2019.
• We anticipate 2021 reshoring + FDI job announcements to be near 200,000, up by at least 25%.
“We publish this data annually to show companies that their peers are successfully reshoring and that they should reevaluate their sourcing and siting decisions,” said Harry Moser, founder and president of the Reshoring Initiative. “With 5 million manufacturing jobs still offshore, as measured by our $900 billion/year goods trade deficit, there is potential for much more growth. We call on the administration and Congress to enact policy changes to make the United States competitive again. Our Competitiveness Toolkit is available to help quantify the impact of policy alternatives, including a stronger skilled workforce, competitive corporate tax and regulatory structures and a lower US dollar.”
To download the full report, visit https://reshorenow.org/blog/reshoring-initiative-2020-data-report/. For more information, visit www.reshorenow.org.