According to the Reshoring Initiative, the pandemic spurred a national push to strengthen the domestic supply chain, especially for essential products. This has been driving reshoring numbers higher. If this continues in 2021, reshoring and foreign direct investment job announcements for 2021 are projected to be over 220,000 – 38% above 2020, which already scored the highest yearly rate recorded to date.
Reshoring has been key to the US manufacturing and economic recovery in 2021, according to the Reshoring Initiative. The organization has been offering the Biden administration guidance in developing essential policies, encouraging the development of a stronger skilled workforce, competitive corporate tax and regulatory structures, and a lower US dollar.
There are many reasons for reshoring:
- The need to keep production close to markets
- Rising labor costs in Asia
- Rising costs of shipping
- Need for a greater skilled workforce
- Pledges from large retailers (such as Walmart) to buy American produced goods
We have taken case studies from the Reshoring Institute to show the wide range of US companies that are bringing jobs back to the US.