Q3 data is in, and it shows reshoring + FDI job announcements were at the highest rate ever recorded, about 15% above Q1 2022, the previous record. 4Q 2022 looks strong enough to reach a 2022 total of 350,000+ jobs. Top takeaways:
- Projected 350k reshoring jobs announced for 2022.
- EV battery investments make Electrical Equipment the top industry.
- Private and federal entities are investing in skilled workforce, addressing one of the leading barriers to success.
- With the Inflation Reduction Act, Chips Act and Infrastructure Bill, the U.S. Government is finally getting started on an industrial policy. A more comprehensive plan is needed.
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 high. Projections from Reshoring Initiative 2022 Q3 data show reshoring and FDI continuing these gains. The current 2022 projection of jobs announced is around 350,000 - another record, up from 260,000 in 2021. If the projection is achieved, 2022 will bring the total jobs announced since 2010 to over 1.6 million.
Supply chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. The risks of Taiwan-China conflict or China voluntarily decoupling are focusing those concerns. Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them. The White House responded with the Inflation Reduction Act, Chips Act and Infrastructure Bill, offering some direction and financial security to the companies and industries intent on filling the gaps. These government actions are necessary in the short run but are not sufficient since the U.S. uncompetitive cost structure is not being improved. A true industrial policy would level the cost playing field via comprehensive actions such as massive skilled workforce investments, a 25% lower USD and retention of immediate expensing of capital investments.
“The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40%, 5 million jobs. Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant and resilient,” said Harry Moser, Founder and President of the Reshoring Initiative.
Read more at Reshoring Initiative 2022 Q3 Data Report.