In the past few decades, more and more manufacturing jobs have been outsourced or lost to other countries, due to costs and regulatory environments, among other reasons. This unfortunate trend, however, is starting to turn around as more of these jobs are making their way back home.
Here is a closer look at why and how manufacturing jobs are returning or “reshoring” to the United States:
Industry and technology growth. Both the auto and electronics industries continue to grow at a fast clip, both requiring advanced manufacturing capabilities and supply. Some of these products are unwieldly and expensive to transport; likewise, products that require more advanced technology need the most skilled workers to create them, further solidifying the reshoring of manufacturing jobs.
Money, money, money, money. Many manufacturing jobs originally left because labor and production were significantly less expensive in other countries. However, overseas wages continue to grow at a brisk pace, decreasing the desirability of offshore jobs. Asia—China, in particular—has recorded the fastest growth in wages. The gap between home and away is smaller than ever, making it more affordable and logical to do business in the U.S.
Lots of logistics. Simply put, it is easier to do business closer to home. Overseas supply chain issues have also made headlines and raised prices. Finally, doing business abroad isn’t less expensive if you have to build new facilities and parts, pay for transportation and shipping, and hire workers who are getting more expensive every day. All of these logistical challenges mean it’s easier to do business in North America than on other continents.
While manufacturing jobs change with the times, more of them are now available in the United States and even more are expected to transition back home.
