Reshoring Reaches Record Highs
Coming off the first year of the COVID-19 pandemic when the risks of lengthy supply chains were exposed and the U.S. saw acute shortages for all kinds of critical goods, the year 2021 saw a renewed push to reshore many jobs and industries, with efforts lead by companies and the federal government alike.
In a new report, the Reshoring Initiative (Sarasota, Fl.) said reshoring and foreign direct investment (FDI) job announcements in 2021 reached a record 261,000, bringing the total jobs announced since 2010 to more than. 1.3 million
For the second year in a row, reshoring exceeded FDI, reversing the trend from 2014 thru 2019 when the opposite was occurring. Additionally, the number of companies reporting reshoring and FDI set a new record topping 1800.
Allowing for a two-year lag until hiring, the Reshoring Initiative estimates that 860,000 people have been hired, equaling 78% of the 1.1 million increase in U.S. manufacturing jobs since the sector’s employment nadir of 11.45 million in February 2010.
Plastic and Rubber Products reshored 47,766 jobs among 184 companies, for the 10th most jobs reshored from 2010-2021. The top three reshoring industries were transportation equipment (368,522 jobs), computer and electronic products (184,496 jobs), and machinery (152,659 jobs).
By country, the most jobs were reshored from China from 2010 to 2021—59,643 total—although that rate is slowing, followed by Mexico (28,347), Canada (12,825), India (7376), and Japan (6750). By region, 63% (89,969 jobs) of reshored jobs over the study’s time period came from Asia.
The top five states to receive reshored jobs from 2010 to 2021 were Michigan, Texas, Tennessee, Arizona and North Carolina, with the vast majority—56% or 737,999 jobs—landing in the South. In terms of near-shoring, approximately 10 times (44,631 vs 4131) as many jobs went to Mexico vs. Canada, with 80% or more of those coming from Asia.
Reshoring reached new heights in 2021 with most jobs coming back from Asia headed to the South and related to transportation equipment.
Photo Credit: Getty