Reshoring numbers show rise in Foreign Direct Investment jobs
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 261,000, bringing the total jobs announced since 2010 to over 1.3 million, according to a May 31 report from Sarasota, Fla.-based Reshoring Initiative.
For the second year in a row, reshoring exceeded FDI by 100%, in contrast to 2014 thru 2019 when FDI exceeded reshoring. Additionally, the number of companies reporting reshoring and FDI set a new record of over 1,800 companies. The Data Report discusses the trend and how reshoring will continue to be key to U.S. manufacturing and economic recovery.
Jobs Announced, Reshoring + FDI, Cumulative 2010-2021
More Takeaways from the Report:
The year over year increase is due almost exclusively to companies filling supplying chain gaps of essential products including: electric batteries, semiconductors, PPE, pharmaceuticals, rare earths and renewable energy.
The Computer and Electronics industry has seen the largest jump in % of jobs, due to semiconductor/chip investment.
Reshoring from Asia is about 10X that from Western Europe.
Texas led the other states in jobs announced, followed by Tennessee.
Preliminary data indicates a continuing surge of reshoring and FDI in 2022.
Reshoring was the key to U.S. manufacturing and economic recovery in 2021. The Biden administration actions to fix key supply chains contributed substantially to the 2021 and forecast 2022 results but are short term fixes. "We see the administration applying tourniquets rather than addressing the underlying issue of U.S. manufacturing cost being uncompetitive," TRI noted. "The Reshoring Initiative offers the Biden administration our help in developing essential policies. Our Competitiveness Toolkit is available to help quantify the impact of policy alternatives, including a stronger skilled workforce, competitive corporate tax rates and a lower U.S. dollar."