Maybe it’s something in the water. Or something about the vast expanse of water between the US and Asia. Because there has been a significant trend of companies reshoring manufacturing operations to the United States.
Between 2010 and 2022, approximately 1,600,000 jobs were announced as returning to the U.S. through reshoring and foreign direct investment (FDI) initiatives. Over roughly that same time period, 1,191 medical equipment and supplies companies re-shored or were receiving FDI.
Industry-specific data indicates that between 2010 and 2021, about 1,285 U.S. manufacturing companies in the transportation equipment sector and 1,191 companies in the medical equipment and supplies sector re-shored or received FDI. Notably, in 2022 alone, a record-breaking 364,000 jobs were announced, up from 238,000 in 2021.
Additionally, a survey revealed that 69% of U.S. manufacturers had begun reshoring their supply chains, with 94% reporting success in these efforts.
Several factors have contributed to this reshoring trend, including geopolitical tensions, supply chain vulnerabilities exposed by the COVID-19 pandemic, and supportive U.S. policies like the Inflation Reduction Act and the CHIPS and Science Act. These policies have provided incentives for domestic manufacturing, particularly in critical sectors such as semiconductors and electric vehicle batteries
Recent corporate commitments underscore this movement. For instance, Eli Lilly plans to invest over $27 billion to establish four new pharmaceutical manufacturing sites in the U.S., creating approximately 3,000 skilled jobs and nearly 10,000 construction jobs.
Similarly, Apple has announced a $500 billion investment in U.S. facilities over the next four years, including a significant AI server production plant in Texas, expected to generate 20,000 jobs.
In summary, the reshoring of manufacturing to the United States has accelerated in recent years, driven by a combination of economic, geopolitical, and policy factors, leading to substantial job creation and investment in domestic manufacturing capabilities.