Reshoring Data Reveals Progress, Problems for Reclaiming Jobs

The Reshoring Initiative, a not-for-profit organization that helps manufacturers recognize the profit potential for adopting local sourcing and production, issued its 2015 Reshoring Report, documenting progress that the U.S. manufacturing sector has made over the past decade in offsetting the job losses and capital investment, and recognized that “rapid job loss” has been curtailed, while conceding that “huge challenges to bringing back the 3-4 million manufacturing jobs previously lost to offshore.”

The report includes data on reshoring of formerly offshore jobs and foreign direct investment (FDI) by companies establishing new domestic manufacturing for 2007-2015. Both factors are keyed to manufacturers’ determination to produce goods in the market where they are intended to be distributed, known as ‘localization.’

The complete— Reshoring Initiative Data Report: Reshoring and FDI Continue Strong in 2015 — is available online.

For 2015, the combination of reshoring and FDI continued to be strong, adding 67,000 domestic manufacturing jobs. Since February 2010 (a low point for U.S. manufacturing employment), more than 249,000 manufacturing since the manufacturing employment low of February 2010, the group indicated.

However, the overall trend fell 6% from 2014 due to a strong U.S. dollar; low oil prices and shipping rates; and weaker economies in competitor manufacturing countries.

Among the reasons for reshoring and FDI documented for 2015 are government incentives, ecosystems/localization, proximity to customers, and a skilled workforce. Offshore problems that companies cited included lower quality, supply interruption, high freight costs, and delivery.

Regionally, the reshoring trend remained strongest in the Southeast and Texas, though in 2015 the West overtook the Midwest for second place among regions gaining the most jobs from offshore.

Despite the downturn, 2015 was the second consecutive year that manufacturing jobs returning to the U.S. remains equal to or slightly higher than the number of jobs leaving. By comparison, for 2000-2007, the U.S. market lost about 220,000 manufacturing jobs annually due to offshoring.

“We publish this data annually to show companies that sourcing domestically is an increasing trend in the United States,” stated Reshoring Initiative founder and president Harry Moser. “With 3 to 4 million manufacturing jobs still offshore, as measured by our $500 billion/year trade deficit, we see potential for even more growth, and we hope this data will motivate more companies to reevaluate their sourcing and siting decisions.”

Moser, the former president of machine tool builder GF AgieCharmilles, established the Reshoring Initiative to help manufacturers recognize the profit potential of embracing local sourcing and production. Among the resources it offers companies to make supply chain sourcing decisions is its Total Cost of Ownership Estimator®, a calculating tool to help account for and understand relevant offshoring costs (e.g., inventory carrying costs, shipping expenses, intellectual property risks, etc.)

SOURCE: American Machinist

RIP Manufacturing Renaissance (and Reshoring) Claims

Because manufacturers (and others) don’t always do what they say, surveys of their intentions on hiring and investment and the like should always be taken with a big boulder of salt – the more so since the questions are often asked and the answers given in a political and policy context.

The Case for Reshoring: Bring Quality Manufacturing Jobs to USA

Good news for U.S. manufacturers: stateside production and employment opportunities are on the rise.

Consumer Reports: Made in America?

Almost eight in 10 American consumers say they would rather buy an American-made product than an imported one, according to a recent survey conducted by Consumer Reports. And more than 60 percent say they’re even willing to pay 10 percent more for it.

Walmart’s Self-Interested Shot at Reviving The American Factory

Making media out of Wal-Mart’s U.S. Manufacturing Summit. (Lydia DePillis/The Washington Post)

Buying more Made-in-the-USA goods helps burnish its image — but domestic manufacturing helps Wal-Mart’s bottom line, too.

WalMart Helped Push Manufacturing Overseas

Now it wants to reverse that. The company is two years into a 10-year plan to buy $250b more in products from American factories.

Wal-Mart: We want to #BuyAmerican!

Image By: Michael A. Marcotte
Wal-Mart Vice President Cindi Marsiglio said the company is continuing its search for American-made products. It has an “Open Call” for manufacturers in July.

ORLANDO, FLA. — Wal-Mart Stores Inc. is looking to boost the number of domestic suppliers as part of its 10-year, $250 billion investment program, according to the retail giant’s head of U.S. manufacturing.

“Made in the USA” Makes a Comeback

The trend of outsourcing to overseas suppliers and contractors may be losing some of its luster. Many businesses are returning to U.S. manufacturers — also known as re-shoring — to obtain goods faster and at lower costs than foreign suppliers can offer. Moreover, “Made in the USA” tags can win over domestic customers who want to feel good about their purchases.

Manufacturers Had a Good Year and Expect 2015 to Be Better

 

 

 

 

 

Recent data show relative strength in demand and output in the manufacturing sector, with activity levels reflecting improvements since earlier in the year. In particular, the latest Institute for Supply Management’s purchasing managers’ index has reflected robust growth in new orders and production since the summer, and employment and pricing pressures appear to be moving in the right direction. The forecast for real GDP and industrial production for 2015 also show promise, both of which are anticipated to expand by roughly 3% next year.

What Happens When You Decide to Leave China?

 

 

 

 

Reshoring is the hottest trend in U.S. manufacturing. According to a recent study by Boston Consulting Group, 54 percent of all United States companies over $1 billion in revenues are planning or considering bringing at least some of their manufacturing back to the U.S.