To capture the essence of the Thanksgiving season, the Reshoring Initiative would like to give thanks to the many companies that reshored, the government programs that helped to incentivize companies to reshore, and the dedicated organizations and individuals that continue to support the Reshoring Initiative. You make U.S. manufacturing growth not just possible, but you help to empower the entire manufacturing ecosystem. You are helping to strengthen U.S. national and economic security. Thank you! Thank you, reshoring firms Reshoring and foreign direct investment (FDI) trends are demonstrating strength and longevity, driven by risks associated with global politics and climate change, and by supportive U.S. industrial policies. Investment in U.S. manufacturing has been rising, with a key focus on shortening supply chains and reducing geopolitical risk. The Reshoring Initiative has been collecting data on reshoring and FDI since 2010 and publishes annual and semiannual reports on these trends. The cumulative jobs announced in reshoring plus FDI from 2010 to 2023 are a stunning 1,898,403 — about 40% of what the United States lost to offshoring over the last 40 years. Figure 1 : Mauldin Economics, “Thoughts from the Front Line” Other signs corroborate increasing manufacturing activity in the United States as demonstrated by massive manufacturing construction spending. As shown in figure 1, annual manufacturing construction spending skyrocketed to a whopping $234 billion as of May 2024, and by 217% from the same period in 2019. A 2024 CEO study by Zogby Strategies and Xometry found that 88% of CEOs agree “the health of American manufacturing depends on reshoring.” Seventy eight percent say they have already successfully reshored or are actively reshoring. Our $1.1 trillion trade deficit drove the demise of our industrial base, loss of millions of manufacturing jobs, the decimation of the middle class, political instability, and subsequent dependence on China. Reversing the job losses and trade deficit signals not just an economic recovery, but a revitalization of American manufacturing strength, a restoration of middle-class stability, a stronger defense industrial base, and a strategic reduction in our dependence on foreign production. So, on behalf of the whole Reshoring Initiative team, we say thank you reshoring firms! Thank you. government programs Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them. The recent acceleration of reshoring was due to the added impact of massive government funding and corporate recognition of the dramatically increasing levels of geopolitical risk. New investments in U.S. manufacturing by domestic and foreign companies shifted into hyperdrive after the Inflation Reduction Act (IRA), Chips and Science Act and the Infrastructure Investment and Jobs Act (IIJA) were enacted, resulting in the highest rate of reshoring and FDI ever recorded. The IRA, CHIPS, and IIJA together provide more than $2 trillion in authorized funding from the federal government as shown in figure 2. Substantial growth has been observed in “essential” industries, particularly those supported by government subsidies. Top products include electric vehicle (EV) batteries, semiconductor chips, and solar energy. Collectively, they accounted for approximately 39% of the announced jobs in 2023. According to Reshoring Initiative data, the most frequent factor reported for "reasons companies reshored or did FDI” is government incentives. Over the past four decades, we have had persistent underinvestment in U.S. manufacturing. In stark contrast, manufacturing investment has now surged with new expenditures in U.S. manufacturing by domestic and foreign companies after the aforementioned government incentives were introduced. For instance, manufacturing investments have reached $89 billion, marking a 305% increase compared to the two years prior to the IRA. We give thanks for these important government programs. Thank you, sponsor companies and associations Thank you to the Reshoring Initiative sponsor companies and associations for their dedication to the rebirth of U.S. manufacturing. A variety of organizations sponsor the Reshoring Initiative to support its mission of bringing manufacturing back home. Sponsors include industry associations, trade publications, machine tool builders, and more. Full list of sponsors. We encourage you to patronize these companies and join the associations. If you’d like to learn more about opportunities to sponsor the Reshoring Initiative, please contact us today. Thank you for supporting us throughout the years. We are thrilled to have your support! Special thanks to ASSEMBLY magazine, which has run Moser on Manufacturing since 2016. Are you thinking about reshoring? For help, contact me at 847-867-1144 or email me at harry.moser@reshorenow.org. Our main mission is to get companies to do the math correctly using our free online Total Cost of Ownership (TCO) Estimator®. Making sourcing decisions via TCO instead of price makes 20% to 30% of imports economically reshorable.
In the spirit of the season, the Reshoring Initiative reviews policies, actions, and trends encouraging the reshoring of manufacturing in the United States.