Reshoring Review- April 2018

Reshoring is the act of repatriating production, jobs, and business to the U.S. that was previously offshored, primarily to a low-cost country (LCC).

Reshoring greatly impacts U.S. custom parts manufacturers – particularly those that are looking for new business and new leads to develop. As work returns, many opportunities are created for savvy machining businesses – especially so for active members of

Here are some of the most recent examples of reshoring to the U.S.


U.S. Manufacturing Is Open for Business

In this piece from Harry Moser, the founder of the Reshoring Initiative, he reviews the first year of a new administration’s impact on manufacturing, employment, and what should come next.

But rather than using hyperbole or rhetoric, Mr. Moser looks at increased reshoring activity in 2017 as a result of economic and regulatory changes enacted over the last year.

The article goes on to propose that a higher dollar hurts U.S. manufacturing by OEMs and other buyers of custom parts to LLCs with lower currency rates and labor costs. It cites a study conducted that assesses at least 30% of the 5-million manufacturing jobs lost between 1995 to 2008.

Also, trade disparities between the U.S. and many of its LCC trading partners and their running deficits are explained as negative to U.S. manufacturing job creation and growth.

“The U.S. has made a great start by cutting tax rates and regulations and by allowing immediate write-off of capital investments,” writes Mr. Moser. “In anticipation of these changes, more than 150,000 manufacturing jobs were created in the U.S. last year through either reshoring or foreign direct investment. If we can make similar progress on the dollar and tariffs, we will maintain the momentum.”


To read this article:


Reshoring Is WAY Up And Growing

Also from the Reshoring Initiative comes its 2017 Data Report. It goes in-depth in supporting the positions put forth in the article above and many more. And these developments should interest any custom parts manufacturer looking for new opportunities reclaim this business.

From the report:


  •  In 2017 announcements of combined Reshoring and foreign direct investment (FDI) jobs were up 122% compared to unrevised 2016 totals and 52% compared to revised 2016 totals. We believe the huge increases were largely based on anticipation of greater U.S. competitiveness due to expected corporate tax and regulatory cuts following the 2016 election. Similar to the previous few years, FDI continued to exceed reshoring in terms of total jobs added, but reshoring has closed most of the gap since 2015.


  •   Negative Factors are the negative issues experienced offshore. Most of the issues are related to distance: freight, delivery, inventory, etc. Others are country specific: rising wages, IP risk, political instability, etc. (These are just some of the elements that members must stress to new prospects and leads regarding the strengths and dependability of doing business with U.S. manufacturers. See the table below for a full list of talking points.)



The full report contains a great deal more information useful to custom parts manufacturers, including geographic strengths and other recommended talking points to use when engaging large buyers with a history of offshoring production.


Using these topics can have a dramatic impact on your company’s number of active customers and leads discovered and engaged, including on


Photo Credit: