U.S. businesses are on pace to bring back a record number of jobs from overseas this year.
Nearly 350,000 jobs are expected to return to U.S. soil, according to reported estimates from the Reshoring Initiative, which would add to the more than 1.3 million total jobs brought back since 2010.
The Reshoring Initiative’s 2021 Data Report discusses reshoring and how the trend will continue to be key to U.S. manufacturing and economic recovery. Bringing the total jobs announced to over 1.3 million since 2010! https://t.co/a1fvz1CYHK pic.twitter.com/6IZVHn3i33
— Reshoring Initiative (@ReshoreNow) July 20, 2022
Global supply chain concerns following the COVID-19 pandemic highlighted the need for U.S. companies to change their approach and their manufacturing locations.
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“We think it’ll be a long-term trend,” Jill Carey Hall, U.S. equity strategist at Bank of America Corp, told the Wall Street Journal, noting that before the pandemic, there was a small uptick. “But obviously COVID was one big trend and you’ve seen a continued big jump up this year.”
Russia’s monthslong invasion of Ukraine and rising tensions between China and Taiwan are also motivating factors.
Lawmakers in Washington, D.C., have also taken notice, passing the Chips and Science Act and the Inflation Reduction Act — two bills that offer incentives and tax breaks for companies that build and invest in domestic manufacturing — which were then signed by President Joe Biden.
A concern for companies seeking to return to the U.S. has increased spending on paying employees.
“There’s no question that companies, when they bring jobs back, they know they’re going to be paying three to five times as much for labor,” said Reshoring Initiative founder and President Harry Moser. “Therefore, they have to automate.”
North American companies are on pace to set a new record with 11,595 robots ordered in the first quarter of 2022, according to the Association for Advancing Automation.
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U.S. companies reshored 265,000 jobs in 2021. China, Mexico, and Canada have accounted for three-quarters of jobs returned to U.S. soil, according to the Reshoring Initiative, with 44% coming from China.
