Industry Featured Articles
Monday, November 19 2018
By Harry Moser, Founder/President, Reshoring Initiative
For decades companies have been chasing cheap labor offshore and then importing products to sell in the U.S. market. The impact of offshoring on the U.S. economy has been significant. Offshoring to China and elsewhere have cost about five million U.S. manufacturing jobs, helped contribute to wage erosion and had a dramatic and negative effect on workers and the economy in every state. Communities have lost, on average, 27 percent of their manufacturing workforce since 2000. About 63 percent of the job loss is due to offshoring of jobs.
Companies have also been impacted, since their largest market, the U.S., has experienced flat or declining real personal incomes and thousands of business customers have disappeared. In view of the current strong surge of jobs back from offshore, understanding the reasons for the losses and the current opportunities to bring millions of jobs back can help site selection consultants and corporate real estate brokers succeed. Knowing what drives reshoring and FDI can help identify siting solutions that overcome the problems experienced offshore.
Monday, July 24 2017
By Michael Langley, Chair of the International Economic Development Council
Many companies with overseas facilities would prefer to have those operations in the United States – as long as the numbers work. But for many firms, the concept of reshoring, or returning manufacturing and services operations to the United States from overseas, is a daunting one.
Yet it doesn’t have to be. At the national, regional, and local levels, there are tools to help with this process, as well as organizations that would like nothing more than to help site selectors and companies work through some of the issues that come with “domesticating” their supply chains.
The International Economic Development Council (IEDC) – the world’s largest membership association serving the economic development profession – has been conducting research on the reshoring trend for three years. In that time, we have interviewed dozens of companies that have returned operations to the United States (or turned to domestic suppliers), and learned a tremendous amount about why companies are reshoring and the challenges and opportunities they face.
Tuesday, December 01 2015
By JoAnn Crary, President, Saginaw Future
After decades of moving jobs overseas, American companies have begun returning operations to U.S. soil in a process that is known as “reshoring.” In the 1970s, many U.S. companies began offshoring jobs—primarily in the manufacturing sector—to Asia in order to take advantage of significantly lower labor rates overseas. While offshoring continued over the following decades, the pace truly accelerated after China joined the World Trade Organization in 2001. In fact, it is estimated that six million American manufacturing jobs were lost between 2000 and 2009.1 In the current decade, the tide has begun to change directions with American companies discovering the benefits of producing goods and providing services including customer service and IT support in the United States.
Over the past year, the International Economic Development Council (IEDC) has spoken with reshored companies and conducted research on the primary reasons why companies are making the decision to reshore. There are numerous reasons for the reshoring trend, but a primary factor has been the rapid increase in labor rates abroad. Challenges with lengthy product lead times, ensuring quality control, and protecting intellectual property have also been stated as reasons for coming home. Sound familiar?