‘Reshoring’ leading to more domestic manufacturing jobs

A new report shows the net migration of at least 10,000 manufacturing jobs back to the U.S. last year.

The Reshoring Initiative, an organization with the goal of helping manufacturers with local sourcing and production, said that more than 60,000 manufacturing jobs either returned stateside or were the result of foreign direct investment. The groups annual report for 2014 estimated that between 30,000 and 50,000 jobs moved abroad in the same time period.

The 2014 numbers represented a 400 percent increase in returning jobs from eleven years prior, where a net of 140,000 jobs were transferred overseas. The group called the report "a shift in the right direction." 

"With 3 to 4 million manufacturing jobs still off shore, we see huge potential for even more growth and hope this data will motivate more companies to reevaluate their sourcing and siting decisions," said Reshoring Initiative founder Harry Moser.

The report said that government incentives, overall workforce skill and the increased value of domestic products were all reasons that drove companies to relocate jobs to the U.S. These were coupled with many negatives of moving positions overseas, including reduced quality, longer lead times and higher freight costs.

The data said that Texas and the southeastern part of the country saw the highest influx of these returning positions. The report is consistent with a predication from the Boston Consulting Group, who claimed that those areas will lead the way in becoming competitive with China for manufacturing products to be sold stateside.

The report was generated from published articles, privately submitted reshoring case studies and some other privately documented cases and provides data and analysis in various categories, including the number of manufacturing jobs lost to offshoring and reasons cited for reshoring.