According to the Reshoring Initiative, in 2018 the number of companies reporting new foreign direct investment (FDI) and reshoring was at the highest level in history, up 38% from the year prior. The combined FDI and reshoring announcements totaled over 145,000 jobs, the second highest annual rate in history.
Manufacturing jobs brought to the United States from other countries is over 757,000 since 2010. This number accounts for an estimated 31% of the total increase in manufacturing jobs for the U.S. during that period, and 3.3% of the 12.8 million employed by manufacturing at the end of 2018.
The Reshoring Initiative largely attributes the increases to greater U.S. competitiveness due to corporate tax and regulatory cuts. Other facts covered in the Reshoring Initiative 2018 Data Report include:
- Reshoring from China represents 59% of the total. Although China topped Germany for the highest number of FDI jobs announced since 2010, China announced 12% fewer in 2018 than in 2017.
- Quality, freight cost, and total cost make up the top offshore drivers.
- Proximity to market, government incentives, supply chain optimization, higher productivity, skilled workforce, and brand image/”made in the U.S.A.” serve as the top domestic drivers.
- Reshoring has been increasing at a similar rate as FDI, indicating that U.S. headquartered companies are starting to understand the U.S. production benefit that foreign companies have seen for the last few years.