2018 Reshoring Initiative Goals and Accomplishments
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%.
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 mfg. jobs: More than 749,000 reshoring and FDI manufacturing jobs have been announced since 2010. Allowing a generous two-year lag until hiring, call it 425,000 hired.
% of mfg. jobs: The 450,000 reshoring and FDI jobs account for 31% of the 1.36 million increase in U.S. manufacturing jobs since the manufacturing employment low of 11.45 million in February 2010 and 3.3% of total 12/31/18 manufacturing employment.
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
Won the Jan 2013 The Economist online written debate on reshoring and offshoring. Inducted into the Industry Week Manufacturing Hall of Fame 2010 Quality Magazine’s Quality Professional of the year for 2012 Manufacturing Leadership Council’s Industry Advocacy Award in 2014 Convinced the U.S. Bureau of Labor Statistics to revise a key website to be more supportive of skills careers Recognized as an industry expert by the U.S. Department of Commerce
* "The Morey Corporation
was in pursuit of a large electronics build opportunity - $15+ million per year over 4 years. In the process we needed to perform an offshore vs. onshore analysis. We used the TCO calculator from Harry Moser and the Reshoring Initiative. This tool framed the costs and risks of both options and was a crucial piece to our winning strategy." - Tony Woodall, VP of Sales 6. Reshoring Initiative 2018 Published Articles and Interviews: Industry Today: U.S. Jobs are Flowing Back but Your Help Is Still Needed Assembly Magazine: Moser on Manufacturing column Making Chips podcast: Bringing Manufacturing Jobs Back to the U.S. – the Reshoring Initiative with Harry Moser [PODCAST] (an interview) Industry Week: Reshoring Is on the Rise: What It Means for the Trade Debate Floor Covering News: Made in the USA: Report card on Trump manufacturing policies (an interview) Quality Magazine: Quality Cost: The Number One Reason Companies Are Reshoring Expansion Solutions Magazine: Reshoring: Changing Conditions Impact Location Decisions Supply Chain Management Review: Is the time right for reshoring? NTMA “The Record”: Is the time right for reshoring? (pg. 16) Industry Week: Why Made-in-USA Fashion is Turning Heads
7. Social Media Reshoring Initiative LinkedIn Group Harry Moser
Linkedin Facebook Twitter @reshorenow www.ReshoreNow.org