For decades, the news was never good. It was all about offshoring and the loss of U.S. manufacturing jobs. Offshoring significantly impacted our trade deficit. But more importantly, it impacted the people who had earned their livelihood and supported their families by working in the manufacturing sector. As manufacturing plants shuttered, entire communities and towns joined the ranks of the unemployed.

Finally, there’s good news to report.

We’re not totally out of the dark. But the trajectory is moving in the right direction and manufacturers are shifting gears, from offshoring to reshoring.

Recent articles1,2 discuss the 2018 statistics which have just been released. Here are the takeaways from those articles.

There has been a steady trend toward reshoring over the past 8 years, but 2018 set a new record. Corporate tax and regulatory cuts, rising wages, and prices in China, and increased recognition of the total cost of offshoring have all contributed to the shift.

In 2018, the number of U. S. companies reporting new reshoring and foreign companies reporting FDI (foreign direct investment) was at the highest level in recorded history, up 38% year-over-year to 1,379 companies. Reshoring job announcements remained strong, at more than 145,000 jobs, second only to the over 170,000 jobs announced in 2017.

The total number of manufacturing jobs brought to the United States from offshore is more than 757,000 since the manufacturing employment low of 2010.

Reshoring Initiative’s 2018 Data Report

Source: Reshoring Initiative’s 2018 Data Report

Beyond the Numbers: Meeting Demand

Reshoring is great news. But how will U.S. manufacturers rise to meet demand? Surely, they will have to find skilled labor to staff their plants. And then there’s the question of technology upgrades. That’s where Strategic Systems Group (SSG) can help. We implement best-in-class manufacturing software, and we will help you select the ERP software solution that’s just right for you – on-premise or in the cloud.

We’ve been serving the software needs of manufacturers since 1991. And now we’re geared up to provide the software and services you need to keep up with the resurgence of US industry and its competitiveness on the world stage.

For more information, visit SSG, call us at 310.539.4645, or email us at info@ssgnet.com. We look forward to speaking with you soon.

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Sources

1https://www.mmsonline.com/blog/post/reshoring-news-june-2019

2https://www.industryweek.com/economy/reshoring-was-record-levels-2018-it-enough