Reshoring Numbers Show Gains, More Ground to Cover

 

Dec 05, 2017

The Reshoring Initiative was founded by Harry Moser, the former president and Chairman Emeritus of a global machining manufacturer. The goal of the organization remains to bring manufacturing jobs back to the U.S. by helping companies realize that offshoring is not always the most cost-effective option.

Some recent statistics unveiled by The Reshoring Initiative show that their efforts might be paying dividends. Through the first three quarters of 2017, approximately 180,000 jobs have been transitioned to the U.S from locations outside of North America.

Over the past ten years, the following companies have been the leaders in reshoring U.S. manufacturing jobs:

  • GM has brought back more than 12,000 jobs.
  • Boeing is next with just under 7,800 jobs.
  • Toyota and Indian auto parts maker Mahindra have both topped the 6,000 mark for reshored jobs.
  • Volkswagen and Volvo are over 4,000.
  • Ford, Foxconn, Mercedes-Benz, and Intel have reshored more than 3,000 jobs.
  • And GE, Caterpillar, and Polaris are all over 2,000.

So, while even one job represents an obvious improvement, The Reshoring Initiative is quick to point out that while admirable strides have been made, at the current rate it will still take three decades to bring back the five million manufacturing jobs that have been outsourced since 2000.

Factors that should help with reshoring efforts include rising global transportation costs that are offsetting cheaper production rates in Asia.

Additionally, lower energy prices stemming from a spike in domestic oil and gas availability have helped trim operating costs and improve profitability. Also, state and local governments have initiated very aggressive tax incentives and training programs in exchange for job guarantees in luring manufacturing to their backyards.

However, as companies look to move closer to the U.S. and its consumer purchasing power, the biggest threat could come from a steadily growing Mexican manufacturing sector.