By Frank Spotorno with Dan Murphy
A recent report by our friends at The Reshoring Initiative (reshorenow.org) found that last year, 2017, the USA saw an increase in manufacturing jobs coming back to this country, or reshoring, at a record pace: 171,000 jobs have returned as a result of reshoring or foreign investment.
American companies are shifting their production of goods from outside the U.S. and bringing their jobs home. While the 171,000 jobs that returned last year is significant, projected figures from this year show that the trend toward making it in the USA is continuing.
While some of the reasons for the return of manufacturing jobs to the USA can be attributed to President Donald Trump and his “Buy American, Hire American” initiative, other factors that add to the bottom line of U.S. companies include proximity to customers, government incentives, and the value of “Made in the USA” branding.
Harry Mosher, president of the Reshoring Initiative, said that more jobs will continue to come back to the USA.
“With 3 million to 4 million manufacturing jobs still offshore, as measured by our $500 billion-per-year trade deficit, there is potential for much more growth,” he said. “We call on the administration and Congress to enact policy changes to make the United States competitive again.”
Mosher added that a strong dollar and a stronger skilled U.S. workforce helps continue the wave of jobs coming back home.
The Reshoring Initiative has been calculating the cost of doing business for American companies overseas, and comparing it to making it in the USA for more than a decade. Every year the cost of building goods and products in China, in comparison to the USA, has narrowed and is now at the point where it makes real business sense to return manufacturing plants back to America.
“We know where the imports are by country, and we know the price difference between the foreign price and the U.S price,” said Mosher. “The total cost of foreign-made goods delivered to the U.S. is a full 95 percent of the cost of U.S.-produced goods. We know how much you have to shift it to make the U.S. competitive with China.”
If the cost of making a product in China is $95, and the same product can be made in the USA for $100, the additional costs and risks of making that product overseas, including location to customers, reliable workforce and the added consumer value of making it in the USA, have finally narrowed to the point of corporations – both American and overseas companies – to make their products here if they are selling their products here.
“For the first time, Asia surpassed Western Europe in generating jobs by FDI, due mostly to increased investment by China and continued strong showings by Japan and Korea,” said Mosher.
American jobs in manufacturing are returning to the Southeast, Texas and the Midwest, with transportation equipment, apparel, and medical equipment products leading the way for the factories to open up again. Hopefully, some of these jobs can finally return to upstate New York, where the small towns that saw their factories close desperately need them.
To view the report, visit Reshorenow.org, and thanks to Harry Mosher for believing in the U.S. manufacturing economy for so many years. Your faith and predictions are finally coming true.
Frank Spotorno is chairman of Bringourjobshome.com, an organization committed to the return of American manufacturing jobs and “Made in America” products.
