2018 Reshoring Initiative Goals and Accomplishments
1. Goal:Our goal is to balance the $800+ billion/year goods trade deficit, thus bringing back five million manufacturing jobs to the U.S., increasing manufacturing output by 40%.
2. Impact:Reshoring plus foreign direct investment (FDI), which are both motivated by the financial advantages the company achieves by producing near the consumer, are making a big difference. Reshoring has come a long way in the last eight years since the Initiative was founded, going from an obscure trickle to a mainstream business strategy and macro driver of the economy. Recognized by the Commerce Department for driving the reshoring trend. • Number of manufacturing jobs:
- i. Equal 58% of the 248,000 manufacturing jobs added in 2018.
ii. More than 757,000 reshoring and FDI manufacturing jobs have been announced since 2010. Allowing for a generous two-year lag until hiring, call it 425,000 hired.
3. Our Methods:• Document the trend: Our Reshoring Library contains 5,900+ articles about reshoring and FDI. The Library is the nation’s only source of data on the reshoring trend. It is sortable by company, industry, country, state and reason. We deliver a comprehensive yearly report. • Promotion: We have made the reshoring trend visible so that companies will reevaluate offshoring. • Enabling: We provide the following tools to help companies reshore. i. Total Cost of Ownership Estimator®: The publicly available tool used by companies to decide on reshoring or offshoring. Linked from U.S. Commerce Department sites. Consistent use of TCO would bring back 15 to 25% of what is now offshore. ii. Import Substitution Program: The Import Substitution Program (ISP) is available to help convince importing companies to produce or source more domestically. ISP identifies the largest importers of relevant products and uses the TCO Estimator to convince the importers to invest or source here. Versions are available customized for U.S. technology suppliers, manufacturing companies, trade associations, Economic Development Organizations (EDOs), and Manufacturing Extension Partnerships (MEPs). Consistent use of the program would increase domestic manufacturing by about 10%. • Advocacy: We developed the Competitiveness Toolkit to quantify the impact of government policy decisions on mfg. jobs.
4. Benefits for U.S. manufacturers and equipment suppliers:• The market is larger: 52% of the reshored mfg. is in machining intensive industries such as transportation equipment, machinery and appliances. • The visibility of reshoring makes recruitment of the skilled workforce easier. • OEMs and contract manufacturers are both more optimistic about the future of manufacturing here and therefore invest more. • Balancing the goods trade deficit will increase machine tool sales by about 20% for 20 years. • Useful contacts at the Department of Commerce and on the Hill • Initiated two national Reshoring Awards to drive awareness: The National Metalworking Reshoring Award (second year running) co-sponsored by AMT, NTMA and PMA and the First SEAMS National Sewn Products Award.
5. Key Accomplishments:• We provide the only source of data on the reshoring trend, delivering a comprehensive yearly report. • Mainstage presenter at IMTS in 2018, 2016 and 2012. • Over 2000 users have done calculations with the TCO Estimator - The TCO Estimator has helped many companies identify production to reshore or source in the U.S. For example, Morey Corp. used the TCO Estimator to save a $60 million order vs. a lower-priced Chinese competitor. * • Partnered in federal reshoring programs in Pennsylvania and Mississippi. Mississippi program: jobs created 320; jobs saved 13; investment $41 million. • Participated in the White House Jan. 11, 2012 Insourcing Forum with Pres. Obama. • Articles written: 100+ • Quoted in the media: 1,000+ • Interviews include: WSJ, Washington Post, NYT, USAToday, Business Week, Forbes, New Yorker, NPR, PBS, NBC, MarketWatch, Fox Business, Barron’s, Huffington Post, LA Times, etc. • Presented at over 500 events, including:
- i. U.S. House of Representatives Mfg. Caucus ii. Hearing of House Sub-Committee on Commerce, Justice, Science and Related Agencies
7. Social MediaReshoring Initiative LinkedIn Group Harry Moser Linkedin Facebook Twitter @reshorenow www.ReshoreNow.org