Homeward Bound

Latest "unique data" from Reshoring Initiative looks at U.S. job creation

A new industry survey capturing the perspectives of original equipment manufacturers (OEMs) and contract manufacturers (CMs) on reshoring and domestic supply chain sourcing is set to be released this April in a joint project between the Reshoring Initiative and Regions Recruiting. With approximately 500 respondents, the survey offers critical insight into how U.S. manufacturers will respond to proposed federal policy changes.

Conducted in Q1 2025, the survey comes at a pivotal time. As the United States government considers new economic policy for manufacturing, manufacturers are navigating complex decisions about costs and planning for potential supply chain disruptions and workforce shortages.

GE Aerospace, headquartered in Ohio, is one example of a company that has reshored operations to the United States.-GE Aerospace photo

The survey highlights the real-world challenges and decisions being made by OEMs and CMs and provides a timely look at how the industry is adapting to both risk and opportunity. The Reshoring Initiative plans to share the full findings of the survey later this month with the new administration, trade associations, industry leaders, and the media.

For advanced access to key points, those interested can contact Harry Moser of the Reshoring Initiative at Harry.Moser@reshorenow.org.

The "1Q2025 Reshoring Survey" contained the following questions (among others):

·      How much would OEMs reshore if a 15% universal tariff is implemented?

·      What alternative policy changes would have even greater impact?

·      What is driving reshoring?

·      What is delaying reshoring?

·      Import price as % of domestic price.

·      Importance companies place on community and country vs. profits.

·      Impact of concern over possible decoupling with China.

·      Equivalent answers for contract manufacturers, a previously un-surveyed, but critical, industry segment.

Meanwhile, the organization's 2024 Reshoring Report found that reshoring and FDI held steady over the course of 2024. The Reshoring Initiative "has new unique data" available on actual announced reshoring and foreign direct investment (FDI) projects, it said in an email to Electrical Apparatus. That data includes the following statistics:

-245,000 reshoring and FDI jobs were announced in 2024, bringing the cumulative total to over 2 million since 2010. Reshoring is outpacing FDI by more than any other year: 66% to 34%.

-"Government Incentives" were once again the most frequently cited factor in reshoring and FDI decisions, followed by "Skilled Workforce, Proximity to customers/market, and Supply Chain interruption risk."

-The computer & electronic products industry, driven by the CHIPS Act, saw the most jobs announced, overtaking last year’s leading industry, electrical equipment, appliances & components, driven by EV batteries and the IRA.

-In the absence of continued government subsidies for the manufacturing industry, will the planned tariffs be able to replace the momentum we have seen in recent years? 2024 and 1Q2025 data indicate some early movement in primary metals (steel and aluminum), transportation (automobiles) and chemicals (pharmaceuticals) in reaction to the anticipated tariffs.