|The number of companies bringing production back to the US or initiating production here has jumped since the 2016 election. In first quarter 2017 that number reached nearly 45,000, up from just over 30,000.|
August 4, 2017
President Trump has yet to initiate the threatened tariffs and other dramatic trade policies he promised during his campaign, but the number of companies proclaiming bringing production back to the US or initiating production here has jumped since his election. That number had entered positive territory long before the election, as companies have increasingly looked at the total cost of their supplies and not just the price.
The Reshoring Initiative tracks the number of manufacturing jobs US-based companies announce bringing back to the US, often referred to as onshoring or reshoring, as well as foreign direct investment, when non-US companies open manufacturing facilities on US soil. In first quarter 2017 that number reached nearly 45,000, up from just over 30,000 in the fourth quarter, and third quarter 2017 saw around 22,000, up from just over 10,000 in each of the first two quarters. The Reshoring Initiative tracks announcements in the public domain, including TV, radio and print.
Harry Moser, who heads up The Reshoring Initiative, said that in part the increase stemmed from companies pushing forward announcements of reshoring they planned to do anyway.
“To a significant extent, however, it’s companies saying it looks like [President Trump] is going to make this a better place to manufacture, by lowering taxes, easing regulation and other factors, and he’s going to make it worse to offshore production,” Mr. Moser said, adding that continuation of the upward trend will depend on whether Republicans succeed in their legislative and regulatory quests.
Moser said 60% of companies make offshoring decisions based on rudimentary metrics, a number consistent with The Reshoring Initiative’s observations but specifically was generated by Archstone Consulting, now a part of the Hackett Group. Those metrics may include the supplier’s price, duty and freight, but typically leave out a slew of other costs that companies are becoming increasingly aware of.
|Tags: US Manufacturing News Reshoring US Manufacturing American Jobs|
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