Reshoring Initiative Releases 2021 Data Report
For the second year in a row, reshoring exceeded foreign direct investment job announcements by 100%, according to the report.
Jobs AnThe Reshoring Initiativenounced, Reshoring + FDI, Cumulative 2010-2021. Photo Credit: The Reshoring Initiative
The Reshoring Initiative’s 2021 Data Report discusses reshoring and how the trend will continue to be key to U.S. manufacturing and economic recovery. In 2021, the private and federal push for domestic supply of essential goods propelled reshoring and foreign direct investment (FDI) job announcements to a record 261,000, bringing the total jobs announced to over 1.3 million since 2010. For the second year in a row, reshoring exceeded FDI by 100%, in contrast to 2014 through 2019, when FDI exceeded reshoring. Additionally, the number of companies reporting reshoring and FDI set a new record of over 1,800 companies.
According to the report, the year-over-year increase is due almost exclusively to companies filling supplying chain gaps of essential products, including electric batteries, semiconductors, PPE, pharmaceuticals, rare earths and renewable energy. The computer and electronics industry has seen the largest jump in percentage of jobs, which the report says is due to semiconductor/chip investment. Reshoring from Asia is about 10 times that from Western Europe, and Texas led the other states in jobs announced, followed by Tennessee. The report suggests that preliminary data indicates a continuing surge of reshoring and FDI in 2022.
Reshoring was key to U.S. manufacturing and economic recovery in 2021. The Biden administration’s actions to fix key supply chains contributed substantially to the 2021 and forecasted 2022 results, but are short term fixes. The organization suggests the administration is still not addressing the underlying issue of U.S. manufacturing cost being uncompetitive. The Reshoring Initiative says it offers the Biden administration its help in developing essential policies. The organization’s Competitiveness Toolkit is available to help quantify the impact of policy alternatives, including a stronger skilled workforce, competitive corporate tax rates and a lower U.S. dollar.
See the full report Reshoring Initiative 2021 Data Report: Essential Product Industries Drive Job Announcements to Record High for detailed analysis.
