Manufacturing jobs announced from reshoring and foreign direct investment in 2022 totaled a record 364,000, the Reshoring Initiative said in a report.
The was up from 238,000 in 2021. “New investments in U.S. manufacturing by domestic and foreign companies surged after President (Joseph) Biden’s Inflation Reduction Act and Chips and Science Act were passed,” according to the report’s executive summary.
Reshoring and foreign direct investment “have followed a strong upward trend for 13 years,” the group said. “The underlying trend is driven by the recognition that, in many cases, the total cost of offshoring exceeds that of sourcing domestically.”
The Reshoring Initiative said there “have been peaks and valleys” in the trend. The report said in 2017 that tax and regulatory cuts boosted the reshoring trend. The pace slipped in 2018 and 2019 because of a trade war. The U.S. and China made a series of trade actions against the other during that period.
“The trend resurged from 2020 to 2022 driven by companies recognizing their vulnerability to supply chain disruptions and, most recently to geopolitical events.”
U.S. investments in computer chips and electric vehicle batteries accounted for 53% of 2022 job announcements, according to the report.
For current trends to be sustainable, “the trajectory will require a much broader industrial policy including more aggressive recruitment/training,” the group said. It will also require a lower U.S. dollar “to replace momentum from unsustainable government subsidies.”
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