Reshoring and foreign direct investment (FDI) job announcements for the first quarter are up 11% from last year, according to the Reshoring Initiative 2023 Q1 Data Report.
“If the current rate continues new job announcements will reach over 400,000 by year-end. Additionally, the cumulative number of jobs brought back since the manufacturing low in 2010 will reach two million - about 40% of what we lost to offshoring,” according to the report.
Four industries account for 91.4% of all added jobs. As EV battery investments accounted for the most job announcements, electrical equipment continues to be the top industry at 47%; computer & electronics comes in at 22.4%, transportation equipment at 11.2% and chemicals at 10.8%.
When ‘Country From’ is reported, most reshoring and FDI jobs are coming from Germany, China, Korea and Japan.
The projected top factors for reshoring in 2023 are eco-system synergies, government incentives and proximity to customers/market.
“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 brought to light our vulnerabilities and the need to address them,” says the report.
You can hear more about reshoring on Thursday, May 25, 2023 at noon (eastern) when Reshoring Initiative Harry Moser joins IndustryWeek Editor-in-Chief Robert Schoenberger to discuss who's still making things in America during the bi-weekly Production Pulse livestream.
