In the past decades, offshoring has caused that many manufacturing jobs moved to other countries. Especially in Asian countries, a lot of jobs were created because of offshoring. By 2003, the United States were losing 150,000 net jobs a year to overseas locations. In 2010 however, a group of industry leaders wanted to stop the bleeding. Harry Moser therefore founded The Reshoring Initiative.
The Reshoring Initiative
The Reshoring Initiative is an effort led by the outsourced manufacturing industry, to bring manufacturing jobs back to the United States. According to Moser, reshoring first of all brings back desirable, high paying jobs in the country. This leads to more employment, and will also reduce the federal budget deficit, because the corporate and personal tax bases increase. In addition, it will reduce the annual trade deficit, which currently stands at $500 billion. Moser estimates that if all offshore manufacturing jobs were brought home, the United States would gain between 2 en 3 million jobs.
Purchase US manufactured goods
The Reshoring Initiative is already implemented by some large companies. For example Walmart, an American multinational retail corporation, is looking to buy more products that are made in de US. The Mississippi merchandise manager for Walmart states that the company has made the commitment that in the next 10 years, they are going to purchase an additional 250 billion dollars of US manufactured goods.
The US are moving forward
Walmart is not the only company that is reshoring some of their manufacturing. Many other companies are reshoring, because countries like China experience higher labor costs and the US are moving forward with manufacturing technology. Companies are positive about this new developments. “As far as communication goes, and just the whole picture of logistics, everything about working with overseas manufacturers is a lot more difficult,” said John Howell of Battlebells, a company that once used overseas manufacturing.
Officials say the Reshoring Intiative is apparently working across the country as the US gained 40,000 restored jobs from 100 companies in 2013. It is even claimed that by 2016, the US will regain jobs at a rate of some 50.000 a year through reshoring.