News from the Reshoring Institute. Harry Moser has been compiling statistics and lobbying for more jobs in the US countering the bean-counter’s urge to shop for the lowest wage possible (ignoring other variables in the financial equation).
Personally, I’m an internationalist. On the other hand, I always felt it foolish to ship jobs out of the country resulting in less manufacturing here. Not that I’m in favor of war, but it is the manufacturing/industrial complex that wins wars. It definitely weakens a country to not have manufacturing. Witness some of the jockeying going on in the world today.
From the press release:
Reshoring + Foreign Direct Investment (FDI) job announcements in 2022 were at the highest rate ever recorded. 4Q announcements accelerated even more than anticipated due to the Chips and Infrastructure Acts and deglobalization trends. Top takeaways:
· 364,000 reshoring + FDI jobs announced for 2022, up 53% from 2021’s record.
· 2022 brought the total number of job announcements since 2010 to nearly 1.6 million.
· EV batteries make Electrical Equipment the top industry.
Then a little editorializing from Moser:
With the IRA, Chips Act, and Infrastructure Bill, the U.S. Government is finally warming up to an industrial policy, though a more comprehensive plan could be achieved at a lower cost.
Supply chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. The risks of a 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 they do not improve the U.S.’ uncompetitive cost structure. 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.