Reshoring Initiative's Q1 Report Depicts Rising Reshoring, FDI

Reshoring and foreign direct investment (FDI) manufacturing job announcements are continuing to outpace recent records, adding 101,500 jobs in 2023 Q1, according to the Reshoring Initiative.

Top takeaways of the Q1 report include: reshoring and FDI jobs announced are up 11% from 2022; reshoring and FDI will total over 400,000 jobs in 2023 (if the current rate continues); and electrical equipment remains the top industry due to continuing large investments in EV batteries. The industry moved from 42% of total jobs announced in 2022 to 47% in 2023 Q1.

Supply chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. Destabilizing climate and geo-political forces including the risks of a Taiwan-China conflict or China voluntarily decoupling, are focusing those concerns. 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. According to the Reshoring Initiative, these government actions are necessary in the short run but are not sufficient since they do not improve the U.S.’ cost structure. An industrial policy could level the playing field by providing 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%, five million jobs. Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant and resilient,” says Harry Moser, founder and president of the Reshoring Initiative.

Read the full report at on the Reshoring Initiative’s website.