August 2022 E-News, Part II: 1H 2022 Data Report: Amidst Global Risks Reshoring Accelerates
Reshoring Initiative 1H 2022 Data Report
The Reshoring Initiative 1H 2022 Data Report shows reshoring and FDI continuing gains. The current projection of jobs announced by year-end is around 350,000, another record high, up from 260,000 in 2021. The second quarter slowed moderately but is still above the rate of any previous year. Supply chain gaps, the need for greater self-sufficiency and the threat of China decoupling are some of the factors driving the increase in reshoring. Read the full Reshoring Initiative 1H 2022 Data report: Multiple Supply Chain Risks Accelerate Reshoringfor detailed analysis of data on jobs, companies, industries, factors at play and more. The release earned a half page article in the August 20th Wall Street Journal.
Rising Seas Are the Next Crisis for the World’s PortsThey’re still reeling from the effects of the pandemic, but in the coming decades, shipping `companies will increasingly have to deal with rising seas. Global shipping will get more expensive and unpredictable.
Downturn: Reshoring directly strengthens the economy and markets. Shorter supply chains allow less inventory and faster delivery and thus less whipsaw of company balance sheets.
Energy inflation: Reshoring means much less shipping and less warehousing.
Material shortages: Developing domestic or North American sources reduces the chance of stocking out.
Call for a Better Skilled Workforce
Gap Between Students' Aptitudes and Their Career Interests Focus of New ReportConclusion: Students have the required basic skills but lack the exposure to many industries. For example, “Students have over 3x more aptitude than interest in advanced manufacturing careers.” Schools need to “better help students find their “why” and then draw connections to related career options
Bringing Back the Guts of American Manufacturing “Sachin Shivaram, chief executive officer of Wisconsin Aluminum Foundry, and Harvard Class of 2003, reports from Wisconsin on the state of manufacturing today and policies to revive the economy of his home state.”
Tesla Lobbying Ontario Government To Set Up EV Manufacturing FacilityTesla Inc is lobbying the Ontario government as part of an effort to set up an advanced manufacturing facility in Canada and working to identify opportunities for industrial facility permitting reforms. EV makers in the United States are looking to source materials and build cars closer to home to diversify supply chains and lower their dependence on China. That effort could accelerate due to the Inflation Reduction Act of 2022.
Reshoring as a Trending Choice for Manufacturers “Reshoring can help manufacturers improve agility. A trend toward reshoring has led to a 116% increase in construction of manufacturing plants during the past year, while 92% of CEOs surveyed for a Kearney index have expressed positivity about reshoring. Companies should take advantage of programs meant to encourage reshoring while evolving to improve agility.” Kearney’s Reshoring Index also shows 90% of manufacturing executives/CEOs reported having a reshoring or nearshoring target for the near future.
Ari Santiago, CEO, CompassMSP, interviewed 11 Connecticut manufacturers, including Stanley, Black and Decker’s VP Business Development, Marty Guay. Marty said “We make where we sell and source where we make.”
Upcoming Events
September 12 to 17 – International Manufacturing Technology Show - IMTS 2022, Chicago, IL
September 13 – IMTS, MFG Learning Bar at Gardner Booth at 1:30pm
September 16 – The inaugural Smarter Sourcing Symposium at IMTS 2022, presented by The Onshoring Project (TOP), will deliver direct strategies for sounder and more financially beneficial North American part production. OEMs, tier suppliers and contract manufacturers alike will benefit from first-hand demonstrations and panel discussions on new tools and proven techniques for leaner, more agile, more profitable domestic sourcing. Friday, Sept. 16, 2022: 8:30 a.m. - 11:00 a.m. in the South Building, Ballroom S100ab. Registration is required.
September 16 – National Metalworking Reshoring Award at IMTS at 12:30pm on the Main Stage in the Grand Concourse between North and South Halls.
Why Reshore Reshoring is an efficient way to increase corporate profits, reduce imports and regain manufacturing jobs in the United States. It's also the fastest and most efficient way to strengthen the U.S. economy.
