Reshoring is a term heard often throughout the modern manufacturing industry. Bringing jobs that were once outsourced to other countries back to the United States is the ultimate goal. The modern manufacturing industry calls for a new kind of workforce, highly skilled and educated, a perfect fit for Americans. Increasing foreign labor costs and an increasingly complex supply chain is enticing businesses to bring manufacturing jobs back to the U.S. but understanding how much progress is being made is vital for future success.
Made popular by the Reshoring Initiative, their goal is to bring good, well-paying manufacturing jobs back to the United States. They assist companies to more accurately assess their total cost of offshoring and show these businesses the true savings that are possible by utilizing local workforce resources. They are a nonprofit organization and offer free tools for business owners to get started.
MFG Talk Radio was lucky enough to speak with the Founder of the Reshoring Initiative, Harry Moser. Listen in to that interview for a deeper look into the organization and what they want to accomplish: http://bit.ly/2uuW2G7
Let’s take a look at the Reshoring Initiative and how much progress has already been made.
When looking at the Reshoring movement over the past five years, five manufacturers stand out. GM, Boeing, Ford, GE, and Caterpillar have made great strides forward in regard to bringing jobs back to the United States. GM is responsible for reshoring 15,450 manufacturing jobs; Boeing ranked second at 5,725; Ford reshored 3,350 jobs; GE came in fourth at 2,566 new American manufacturing jobs and Caterpillar came in fifth with 2,100 jobs reshored. These aren’t the only companies that did their part in bringing jobs back to the United States. There are many companies from a variety of sectors that have taken it upon themselves to bring back offshored jobs.
Bringing these jobs back to the United States is not only a great move for the communities that rely on a thriving manufacturing workforce but the economy as a whole. “With 3 to 4 million manufacturing jobs still offshore, as measured by our $500 billion per year trade deficit, there is potential for much more growth,” Harry Moser stated. http://bit.ly/2eLcLPS
With organizations like the Reshoring Initiative, it’s become easier to understand the true cost of offshoring employment. As more manufacturers begin investigating the opportunities the American workforce has to offer, the trend will continue to catch on. It’s not a simple task for a company, especially a manufacturer to uproot their offshored business, however, the benefits could far outweigh any potential disruptions.
Sources:
http://gsabusiness.com/news/manufacturing/72569/
https://www.manufacturing.net/data-focus/2017/07/numbers-american-reshoring-movement
