The word “offshore” has become common in large American companies. It’s a constant concern for workers, as their jobs have been disappearing for lower cost personnel overseas for years. Now, it appears that the opposite – “reshoring” – might be making a comeback.
Here are Five Fast Facts about the new reshoring trend in America:
- 📈Coming Home - American companies have “reshored” almost 350k jobs in 2022, the highest number since they started tracking it in 2010. Last year was the previous high, at 265k. This is a high we can all embrace, right?
- 🌎What’s Causing It? World events and major supply chain issues are driving this reversal. Things like the COVID pandemic, the Russia/Ukraine war, and a potential conflict between China and Taiwan are making American companies a bit jittery. Hm, sanity…we like it!
- ☎️People In The Know - Bank of America has noticed that corporate earnings calls have seen a 12x increase in the use of the word “reshoring” compared to just two years ago. This is where the decision-makers hang out and chat, so it’s probably best to pay attention!
- 📝Follow The Money - The government is throwing out goodies for reshoring, too. Earlier this month new tax breaks landed for manufacturing and investments in high tech goods and pharma. Always, always, ALWAYS follow the money!
- 🦾How Does It Play Out? Just because offshore jobs are going down doesn’t mean the same number of jobs here will go up. Some of the reshoring is focused on automation. North American companies purchased 12k robots (worth almost $650M) in the first few months of this year, another record pace. Unfortunately, these are robots like Tony Stark’s Dum-E rather than Ultron. No wait, maybe that is a good thing!
🔥Bottom line: It’s hard to see exactly how this will impact Paychecks. It seems very likely to be a net win for new jobs, probably with a mix of high- and low-skilled workers rather than a straight transfer from the jobs overseas. Either way, we like it, and would love to see a whole lot more “Made in America” in the coming years!
Has your company reshored any jobs?
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