The reshoring movement is creating a resurgence in US manufacturing.
Reshoring means some manufacturing jobs, many of which were deemed gone for good, are beginning to return to the US.
Jobs returning to the US? Let's take a look at what that might mean.
Manufacturing has a substantial impact on the overall vitality of local, regional and national economies. According to updated data from the National Association of Manufacturers (2010), every $1 spent in the manufacturing sector generates $1.35 in the economy at large. Every 9 jobs created in manufacturing leads to the creation of at least one job in other sectors.
Manufacturing has a substantial impact on the overall vitality of local, regional and national economies. According to updated data from the National Association of Manufacturers (2010), every $1 spent in the manufacturing sector generates $1.35 in the economy at large. Every 9 jobs created in manufacturing leads to the creation of at least one job in other sectors.
Manufacturing produces a greater positive impact than any other sector of the economy.
Overall, the US remains the world’s largest manufacturing economy. In terms of output, the US represents 21% of all manufactured products. China is second (15%) and Japan is third (12%).
If US manufacturing were a country, it would be the 9th largest economy in the world. Just a few years ago, US manufacturing claimed it was the 8th largest economy in the world, so we’re losing ground there.
Nearly 12 million Americans (9% of the workforce) are directly employed in manufacturing, and another 5 million jobs are supported by manufacturing.
Are you evaluating education and career options? Take note. In 2010, the average annual earnings (income and benefits) for non-manufacturing workers was about $56,000 per year. In comparison, the average earnings for manufacturing workers was more than $77,000.
Finally, manufacturers conduct nearly two-thirds of all research and development that occurs in the US. This means manufacturing drives more innovation than any other economic sector.
So, does reshoring matter?
Yes, it does. A profitable, productive and competitive manufacturing sector is essential for a vibrant, robust US economy today and in the future, which means the reshoring trend affects every one of us.
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