June 2024 Reshoring Initiative E-News: 2023 Job Announcements Reach 287k - 2nd Highest Year on Record
2023 Reshoring Initiative Annual Report details the remarkable surge in reshoring and foreign direct investment (FDI)
The Reshoring and FDI trends continue to grow, driven by increasing global risks. Supply chains today face numerous disruptions, from political tensions and regional conflicts to climate change and extreme weather events. These factors, combined with economic uncertainties, underscore the need for resilient and adaptable supply chain strategies to navigate an increasingly unpredictable global landscape. Reshoring is a major key to reducing these risks.
Trend Highlights:
Significant growth has been noted in “essential” industries supported by the Inflation Reduction Act (IRA) and other government subsidies, particularly in EV batteries, semiconductor chips, and solar energy. These products drove about 39% of the announced jobs in 2023.
Skilled workforce is a top factor. The success or failure of training millions of workers could skew the outcome of the current reindustrialization momentum, in either direction. Trends are moderately positive, e.g. manufacturing apprenticeships up 83% in the last 10 years.
China remains a large threat, with the highest combination of huge trade dependency, single sourcing and geopolitical risk associated with tension over Taiwan and the possibility of decoupling. Reshoring and FDI from China are near historical highs, with reshoring at an all-time high of 87%.
See the full Report for a detailed analysis of all the trends, the underlying factors, and their projected impact on the U.S. manufacturing landscape.
RI endorses this advocacy. Close the De Minimis Loophole is dedicated to stopping the importation of slave-labor-made products and illicit drugs ravaging communities. “Among its key objectives, the Coalition is dedicated to increasing awareness and education around the harmful impacts of de minimis, a loophole being exploited by China and other foreign entities to facilitate a flood of fentanyl and other illicit drugs, products made with slave labor, and counterfeit and toxic consumer products into the U.S. market.” The de minimis loophole allows packages with stated value up to $800 to avoid taxes and tariffs and, too often, inspection. About 8 million such packages arrive daily. $100 billions of goods arriving duty-free each year. Contact your U.S. Representatives to support this effort.
The rivalry between China and the United States, war in the Middle East, ongoing tensions with Russia, and the U.S. deficit look like “pre-war” conditions.
Ambiguous Taiwan-U.S. trade policies add to economic war risks with China. Michael E. O'Hanlon proposes that the “United States make it unambiguously clear to Beijing that, were it ever to attack Taiwan in a concerted attempt to coerce capitulation and reunification, the U.S.-China relationship could never be the same.”
Chip giants reveal contingency plans for a potential Chinese invasion of Taiwan. “ASML and TSMC reassured U.S. officials that they have ways to disable their most sophisticated chip machines remotely should China invade Taiwan.”
Disruption of key waterways – Panama Canal, Danish Straits, Turkish Straits, Bab el-Mandeb, Strait of Hormuz, and Strait of Malacca – will upset trade and spur inflation.
S&P Global Market Intelligence found corporate bankruptcy at a 13-year peak in 2023 and still climbing, with supply chain troubles a common thread in bankruptcy petitions.
Most counterfeit goods seized in the United States come from China. 2023 fiscal year U.S. Customs data show China is responsible for “approximately 61% of the MSRP value of all intellectual property rights seizures.”
The Community details here the threats associated with China, Russia, Iran, contested spaces, digital authoritarianism, extreme weather, transnational organized crime, and more.
The United States bought more goods from Mexico than China in 2023, evidence of how much global trade patterns have shifted. See Harry’s article in Industry Week: Did the U.S. Really Import More Goods from Mexico than China? When you adjust for lower Chinese prices and Chinese shipments through Mexico, we are still more dependent on China.
The 2024 Kearney Reshoring Index finds upticks in reshoring and nearshoring. The repatriation of U.S. manufacturing includes a 5% increase in Americans buying Made in America products.
Reshoring Call to Action
Learn more about your consumer power at Made in America, an educational non-profit working to strengthen our domestic economy.
Support your economy. Go to Made in USA and purchase American-made goods.
Did You Choose Vocational Education? Let Your Voice Be Heard!
FORTUNE magazine calls for modern manufacturing voices
Senior editor Steve Mollman at Fortune.com is seeking first-person commentaries from young individuals who chose a career in manufacturing over a four-year degree and white-collar career.
If you have a story to share, please get in touch with steve.mollman@fortune.com to discuss your essay idea for the commentary section of Fortune’s website. Commentaries from others in the manufacturing sector, especially those involved in reshoring, are also welcome.
Upcoming Events
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Apply here for the Seventh National Metalworking Reshoring Award. OEMs and job shops are both eligible. U.S., Mexico and Canada are eligible. Applications will carry over to 2025.
Why Reshore Reshoring is an efficient way to increase corporate profits, reduce imports and regain manufacturing jobs in the United States. It's also the fastest and most efficient way to strengthen the U.S. economy.
