The report notes that last year, combined reshoring and related FDI announcements surged, adding over 171,000 jobs—up 2,800 percent from 2010. The report also shows upward revisions of 67,000 jobs from prior-year data, bringing the total number of manufacturing jobs brought to the US from offshore to 576,000 since the manufacturing employment low of 2010. The report claims that the 171,000 reshoring and FDI jobs announced equal 90 percent of the 189,000 total manufacturing jobs added in 2017.It seems that the first mention of the word "reshoring" in this blog as back on February 12, 2013, so I've been following this trend at least since then (it links to an article here a year earlier). The Reshoring Initiative (RI) includes data going back to 2007. The factors involved in the decision to produce something offshore or here are wide ranging. In the report, they question companies for the reasons of moving back (or investing in the US). RI then ranked those reasons from 1 to 23 as factors against offshoring and factors favoring reshoring.
Also, note how the numbers on the right column are greater than 100 much farther down the chart than the left column, and how the right column has bigger numbers in general. It's a rather unified group of respondents.
RI noted that one of the reasons jobs are returning is that the cost differential between home-produced goods and landed goods from overseas has been shrinking for years. RI founder Harry Moser said:
“We know where the imports are by country, and we know the price difference between the foreign price and the US price. The total cost of foreign-made goods delivered to the US is a full 95% of the cost of US-produced goods,” said Moser. “We know how much you have to shift it to make the US competitive with China.”Those who haven't worked in manufacturing probably don't understand how intense the pressure is to always do more with less. In manufacturing, time is money and getting the job done right with minimal waste, and then always getting better is the mantra. Maybe because of that, managers chase fads that promise better performance or lower costs. The cost advantages of going offshore have to be much bigger than they are to overcome that column of reasons not to offshore.
From Design News.