March 17, 2017

March 2017 eNewsletter

2016 Reshoring and FDI Stronger Than Expected

In the News
Reshoring is being driven by anticipation of national policy changes that will increase U.S. competitiveness
The transportation equipment industry continues to lead the pack, with General Motors announcing the largest numbers of reshored jobs by an OEM, including manufacturing and related IT and R&D jobs. See details at: “General Motors to create 7000 US jobs with $1bn investment” and “Why Big Companies are Reinvesting in American Manufacturing.”

In response to emerging policy changes, AFS (American Foundry Society) has provided two highly informative and free webinars: Trade Policies in the Trump Administration, and Congress, Trump and Tax Reform.
The 2016 Reshoring Data Report: Reshoring and FDI stronger than expected
Our 2016 year-end data reflects the recent increase in U.S. manufacturing, with the sum of reshoring and foreign direct investment (FDI) up by 12.5% in 2016 despite the strong dollar and low freight rates. The 2016 Report, to be released March 27th, details the breakdown of the trends by industry, region and factors driving change.
Potential success stories reported since the election
Many large companies such as Apple, Carrier, Foxconn, SoftBank and Quanta have announced plans to bring or keep thousands of jobs here, accelerating existing reshoring trends.
Debate on the causes of manufacturing job loss
For the U.S. to develop the trade and tax policies that will be most favorable for the country, it is crucial to know how many jobs were lost to offshoring and thus how many can be created by eliminating the trade deficit. Recently, a widely quoted study incorrectly concluded that the loss of 750,000 jobs, or 13% of the manufacturing job loss from 2000 to 2010, was due to offshoring/trade, and that the balance of the jobs was lost due to automation. The Reshoring Initiative, EPI’s Robert Scott, MIT’s David Autor and ITIF’s Adams Nager all conclude that 50% or more of the losses were due to offshoring. The important takeaway is that under the right conditions reshoring can restore millions of jobs. See more details here.
What will drive continued success?
Walmart announces open call for U.S. products
Walmart has announced via their U.S. manufacturing website that its 4th annual Open Call event will be held on June 28th 2017. Registration for companies interested in pitching U.S. sourced goods will open on April 3rd.

Recent and Upcoming Events

Media highlights
The South China Morning Post interviewed Harry for its report: “Fashion brands fear Trump’s trade policies will disrupt global production chains, with risk of tariffs squeezing profits.”

Harry was a guest on two recent NPR shows. You can listen to them at:
MarketWatch published “Opinion: How the U.S. could bring back up to half the manufacturing jobs moved overseas” by Harry Moser and Sandy Montalbano.

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Reshoring Initiative

Harry Moser,
Founder & President
(847) 726-2975
Millar Kelley,
Newsletter Editor & Research Analyst
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