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Reshoring and FDI Jobs Increase a Record 53% at the End of 2022

The Reshoring Initiative’s 4Q report shows that reshoring and Foreign Direct Investment (FDI) job announcements in 2022’s last quarter hit the highest rate ever.

Rob Spiegel

April 3, 2023

2 Min Read
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Booblgum for iStock / Getty Images Plus

The Reshoring Initiative’s quarterly report for 4Q 2022 reveals a massive increase in manufacturing jobs due to reshored production facilities in North America. That trend is bolstered by new facilities supported by government investment. 4Q job announcements were accelerated by the Chips and Infrastructure Acts and deglobalization trends.

Industrial job announcements in 4Q 2022 were at the highest rate ever recorded, about 15% above Q1 2022, the previous record. 4Q numbers were strong enough to give 2022 a total of 350,000+ jobs.

Here are the top takeaways from the report:

  • Projected 350k reshoring jobs announced for 2022

  • EV batteries make electrical equipment the top industry

  • Private and federal entities are investing in skilled workforce development, one of the top barriers to success

  • With the IRA, Chips Act, and Infrastructure Bill, the US Government is getting started on an industrial policy.

This chart shows reshoring on an upward trajectory for the past decade. Yet the period starting with the pandemic reveals a stunning increase. This is likely the result of the supply chain collapse during the pandemic and manufacturers’ eager work to solve this problem by bringing supply closer to production.

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Supply Chain Gaps Need Further Closing

Supply chain gaps that erupted during the pandemic showed the need for greater self-sufficiency among North American manufacturers. That set the stage for the current upward trend in reshoring, according to the Reshoring Initiative. The risks of a Taiwan-China conflict or China voluntarily decoupling became a major concern. “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 the Infrastructure Bill, offering some direction and financial security to the companies and industries intent on filling the gaps,” read a statement in the report.

The report went on to say that government actions are necessary for the short run but are not sufficient since they do not improve the U.S. uncompetitive cost structure. The report’s editors noted that true industrial policy would level the cost playing field via comprehensive actions such as massive skilled workforce investments, a 25% lower US dollar, and the retention of immediate expensing of capital investments.

Harry Moser, the founder and president of the Reshoring Initiative, noted that “The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40%, or 5 million jobs. Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant, and resilient.”

About the Author

Rob Spiegel

Rob Spiegel serves as a senior editor for Design News. He started with Design News in 2002 as a freelancer covering sustainability issues, including the transistion in electronic components to RoHS compliance. Rob was hired by Design News as senior editor in 2011 to cover automation, manufacturing, 3D printing, robotics, AI, and more.

Prior to his work with Design News, Rob worked as a senior editor for Electronic News and Ecommerce Business. He served as contributing editolr to Automation World for eight years, and he has contributed to Supply Chain Management Review, Logistics Management, Ecommerce Times, and many other trade publications. He is the author of six books on small business and internet commerce, inclluding Net Strategy: Charting the Digital Course for Your Company's Growth.

He has been published in magazines that range from Rolling Stone to True Confessions.

Rob has won a number of awards for his technolloghy coverage, including a Maggy Award for a Design News article on the Jeep Cherokee hacking, and a Launch Team award for Ecommerce Business. Rob has also won awards for his leadership postions in the American Marketing Association and SouthWest Writers.

Before covering technology, Rob spent 10 years as publisher and owner of Chile Pepper Magazine, a national consumer food publication. He has published hundreds of poems and scores of short stories in national publications.

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