In 2021, the private and federal push for domestic supply of essential goods propelled reshoring and foreign direct investment (FDI) job announcements to a record high. Projections from Reshoring Initiative® 1H 2022 data show reshoring and FDI continuing these gains. The current 2022 projection of jobs announced is around 350,000 - another record and up from 260,000 in 2021. If the projection is achieved, 2022 will bring the total jobs announced since 2010 to over 1.6 million.
Supply chain gaps and the need for greater self-sufficiency continue as major factors driving reshoring. The possibility of a Taiwan-China conflict and the threat of China decoupling are focusing those concerns. Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them. Subsequently, great opportunities have arisen for a meaningful rebound of U.S. manufacturing. If the current trajectory continues, it will reduce the trade and budget deficits, add jobs, and make the U.S. safer, more self-reliant and resilient.
More Takeaways from the Report:
• The continuing upward trend is due almost exclusively to companies filling supply chain gaps of essential products, including electric batteries, semiconductors, PPE, pharmaceuticals, rare earths and renewable energy.
• Shifting geopolitical forces are keeping supply chain risks in focus, resulting in increases in public awareness, government interventions and actions by individual companies.
• The Electrical Equipment industry has taken the lead with a significant increase in jobs announced, due to large EV Battery investments.
• So far, the top three states by jobs announced are Kentucky, North Carolina and Georgia.
• Preliminary data indicates a continuing surge of reshoring and FDI in 2H 2022.
To see the full report, visit https://reshorenow.org/blog/reshoring-initiative-1h-2022-data-report/.