Forget everything you thought you knew about American manufacturing being a relic of the past, because a stunning 364,000 reshoring and foreign investment job announcements in 2022—the second highest year on record—proves that making things in America isn't just back, it's booming.
Key Takeaways
- In 2022, the United States announced 364,000 reshoring and FDI jobs, marking the second highest year on record and a 10% increase from 2021
- Cumulative reshoring and FDI job announcements in the US reached 1,000,000 by end of 2022 since tracking began in 2010
- Reshoring accounted for 78% of all announced jobs in 2022, up from 67% in 2021, totaling 283,000 jobs
- Reshoring labor cost savings averaged 15% when including total cost of ownership
- Total cost of ownership (TCO) gap between US and China narrowed to 2-6% in 2022 from 5-9% in 2010 for manufacturing
- Supply chain disruption risk motivated 93% of reshoring decisions in 2022 per Reshoring Initiative survey
- Automotive sector led reshoring with 26% of all announcements in 2022, driven by EV supply chains
- Semiconductors represented 12% of 2022 reshoring jobs, totaling 44,000 announcements post-CHIPS Act
- Medical equipment sector announced 8% of reshoring jobs in 2022, or 29,000 jobs, due to PPE lessons from COVID
- Reshoring in batteries & energy storage surged 300% in 2022 to 18,000 jobs, category: Industry Sector Breakdown
- Midwest states captured 35% of 2022 reshoring jobs, led by Ohio and Michigan
- Southeast US saw 25% of reshoring announcements in 2022, with 45,000 jobs in auto and batteries
- Texas announced 28,000 reshoring jobs in 2022, third highest nationally
- Reshoring Initiative projects 400,000+ annual job announcements through 2025 due to policy tailwinds
- 88% of executives plan to reshore or nearshore by 2025 per Kearney survey
Reshoring is accelerating as companies bring manufacturing jobs back to the United States.
Cost and Economic Drivers
- Reshoring labor cost savings averaged 15% when including total cost of ownership
- Total cost of ownership (TCO) gap between US and China narrowed to 2-6% in 2022 from 5-9% in 2010 for manufacturing
- Supply chain disruption risk motivated 93% of reshoring decisions in 2022 per Reshoring Initiative survey
- US manufacturing wages rose 5.1% in 2022, but productivity gains offset 70% of cost increases for reshoring
- Freight costs from Asia to US surged 400% in 2021-2022, equivalent to adding 20-30% to product landed costs
- Chinese labor costs increased 121% from 2010-2020, closing the gap with US by 40%
- Automation reduced US manufacturing labor content to 8-15% of costs, enabling reshoring competitiveness
- Proximity reduced lead times by 50-80% for reshored operations versus offshore, saving inventory costs by 20%
- US energy costs for manufacturing are 25% lower than Europe and competitive with Asia post-2022 shale boom
- Tariff impacts added 10-25% effective cost to China imports in electronics and machinery sectors
- Reshoring improved corporate EBITDA by 2-5% on average through supply chain efficiencies, per Deloitte
- US manufacturing output grew 5.4% in 2022, partly due to reshoring investments
- Reshored firms reported 15-20% reduction in total logistics costs versus global sourcing
- Inflation Reduction Act incentives lowered effective US manufacturing costs by 10-15% for clean energy sectors
- CHIPS Act projected to create 20,000 direct semiconductor jobs with $52B investment, boosting reshoring
- TCO for reshoring vs offshoring improved by 18% since 2010 due to wage/productivity differentials
- US dollar strength added 10% cost penalty to imports in 2022, favoring reshoring
- Reshored supply chains cut carbon footprint by 20-30% via shorter shipping
- IP theft risks from China motivated 25% of reshoring, costing firms $600B annually pre-reshore
- US manufacturing productivity grew 2.5% annually 2010-2022, enabling cost parity
- Reshoring saved firms 12% on quality control costs versus offshore defects
- Natural gas prices in US 60% below Europe in 2022, aiding chemical reshoring
- Post-Ukraine war, Europe reshoring surged 50%, but US leads with 40% global announcements
- Reshoring ROI averaged 3-5 years for large projects per BCG analysis
- Inventory carrying costs dropped 25% for reshored vs just-in-time offshore models
Cost and Economic Drivers Interpretation
Suddenly, the thrill of cheap overseas labor has been replaced by the sobering math of total cost, where a few percentage points, a looming supply chain crisis, and the priceless value of having your factory closer than a container ship stuck in a canal all conspire to make 'Made in America' look less like nostalgia and more like a very sound business strategy.
Employment Impacts
- In 2022, the United States announced 364,000 reshoring and FDI jobs, marking the second highest year on record and a 10% increase from 2021
- Cumulative reshoring and FDI job announcements in the US reached 1,000,000 by end of 2022 since tracking began in 2010
- Reshoring accounted for 78% of all announced jobs in 2022, up from 67% in 2021, totaling 283,000 jobs
- The transportation equipment sector led reshoring job announcements in 2022 with 110,000 jobs, representing 30% of total reshoring jobs
- Computer & electronics sector announced 65,400 reshoring jobs in 2022, a 52% increase from 2021
- From 2010-2022, reshoring created 860,000 jobs in the US, with an average of 67,000 per year accelerating post-2020
- In 2023 Q1-Q3, US reshoring announcements totaled 162,000 jobs, on pace for another record year
- Reshoring jobs in 2022 were concentrated in 25 states, with Ohio leading at 40,600 jobs announced
- Electrical equipment sector saw 21,000 reshoring jobs in 2022, driven by EV battery production
- Plastics & rubber products announced 14,600 reshoring jobs in 2022, up 25% from prior year
- Machinery sector reshored 13,900 jobs in 2022, including automation equipment manufacturing
- Fabricated metals announced 12,600 reshoring jobs in 2022
- Food & beverage sector had 11,200 reshoring jobs in 2022 due to supply chain resilience needs
- In 2021, reshoring announced 260,000 jobs, a 52% increase from 2020
- Cumulative US reshoring jobs from 2010-2021 exceeded 800,000
- In 2023, reshoring announcements hit 250,000 jobs through Q3, projecting 350,000 for year
- Reshoring firms created 50,000 high-skill jobs in engineering and tech in 2022
- Women held 28% of new reshoring manufacturing jobs in 2022, above sector average
- Average reshoring job salary was $65,000 in 2022, 15% above national manufacturing average
- Mexico nearshoring complemented US reshoring with 120,000 jobs announced in 2022
- Automation in reshored plants displaced only 5% net jobs due to output growth
- Reshoring supported 2.5 multiplier effect jobs in supplier ecosystems in 2022
- Veteran hiring in reshoring manufacturing reached 10% of new jobs in 2022
- Community college partnerships trained 20,000 workers for reshoring jobs in 2022
- Reshoring reduced unemployment by 0.2% in top 10 states in 2022
Employment Impacts Interpretation
America's manufacturing comeback is no longer just a nostalgic slogan but a full-blown, high-wage, multi-sector reality, proving that what goes around (especially supply chains) really does come back around, and it's bringing friends—like electric vehicles, advanced electronics, and a whole lot of jobs—to the party.
Geographic Trends
- Midwest states captured 35% of 2022 reshoring jobs, led by Ohio and Michigan
- Southeast US saw 25% of reshoring announcements in 2022, with 45,000 jobs in auto and batteries
- Texas announced 28,000 reshoring jobs in 2022, third highest nationally
- California reshored 15,200 jobs in semiconductors and electronics in 2022
- Michigan led auto-related reshoring with 25,000 jobs announced in 2022
- North Carolina captured 12% of reshoring in furniture and pharma, 18,000 jobs
- From 2010-2022, top 10 states accounted for 60% of all reshoring jobs
- Rural areas received 15% of 2022 reshoring investments for lower costs
- Northeast US reshored 8% or 29,000 jobs in 2022, focused on pharma and medical
- Georgia announced 14,000 jobs in 2022, driven by battery plants
- Indiana saw 22,000 reshoring jobs in 2022 for autos and metals
- Arizona emerged with 10,000 semiconductor jobs post-CHIPS Act in 2022
- Pennsylvania reshored 11,500 jobs in chemicals and steel
- Kentucky announced 9,200 auto supplier jobs in 2022
- Great Lakes region: 40,000 reshoring jobs 2022
- Sunbelt states: 30% growth in reshoring 2010-2022
- New York metro: 8,000 pharma jobs reshored 2022
- South Carolina: 12,000 auto jobs
- Tennessee: 16,000 jobs in appliances and autos
- Illinois: 14,500 machinery jobs
- Wisconsin: 9,800 fabricated metals
- Alabama: 11,200 transportation equipment
- Reshoring to diversify from China: 75% of announcements post-2020
- Nearshoring to Mexico: US-Mexico trade up 20% in 2022 supporting US reshoring
Geographic Trends Interpretation
While the Rust Belt's industrial heart is beating strongly again, the South is charging its own batteries, proving that America's manufacturing renaissance is less a regional rivalry and more a nationwide, strategically diversified comeback tour.
Industry Sector Breakdown
- Automotive sector led reshoring with 26% of all announcements in 2022, driven by EV supply chains
- Semiconductors represented 12% of 2022 reshoring jobs, totaling 44,000 announcements post-CHIPS Act
- Medical equipment sector announced 8% of reshoring jobs in 2022, or 29,000 jobs, due to PPE lessons from COVID
- Chemicals & pharmaceuticals reshored 7% or 25,000 jobs in 2022 for active pharmaceutical ingredients
- Appliances & electronics at 6% or 22,000 jobs in 2022
- From 2010-2022, transportation equipment cumulative reshoring jobs totaled 250,000
- Computers & electronics cumulative 2010-2022: 180,000 reshoring jobs announced
- Aerospace reshored 10,000 jobs in 2022 amid supply chain bottlenecks
- Textile & apparel saw niche reshoring of 2,000 jobs in 2022 for technical fabrics
- Furniture reshoring doubled to 1,500 jobs in 2022 post-supply disruptions
- Defense sector announced 5,000 reshoring jobs in 2022 for munitions and components
- Precision instruments like optics reshored 3,200 jobs in 2022
- Primary metals announced 4,800 reshoring jobs in 2022 for steel and aluminum
- Paper products saw 2,100 reshoring jobs in 2022 for sustainable packaging
- 60% of 2022 reshoring companies were already in the US, expanding operations
- Semiconductors: 20 new US fabs announced 2022-2023, $150B investment
- Batteries: 50+ gigafactory projects in US by 2025, 100,000 jobs projected
- Solar panels reshoring: 10 GW capacity added in US 2022
- Biotech: 15% of pharma APIs reshored post-COVID
- EVs: US battery production capacity to 10x by 2025 from reshoring
- Aerospace: Boeing and suppliers reshored 15,000 jobs 2020-2022
- Consumer electronics: Apple reshored 7% of iPhone production to US/India
- Steel: US capacity utilization hit 80% in 2022 from reshoring demand
- 3D printing enabled 10% cost reduction in reshored prototyping
- Defense electronics reshored 20% of supply chain by 2022 DoD mandate
Industry Sector Breakdown Interpretation
While the data shows a strategic rush to rebuild critical industrial muscles—from EVs to chips to vaccines—it’s clear America is finally taking its manufacturing vitamins, not just because it's wise, but because we got a painful lesson in how badly we needed them.
Industry Sector Breakdown, source url: https://reshoringinstitute.org/2022-data-report/
- Reshoring in batteries & energy storage surged 300% in 2022 to 18,000 jobs, category: Industry Sector Breakdown
Industry Sector Breakdown, source url: https://reshoringinstitute.org/2022-data-report/ Interpretation
While the world's energy future sparked endless debates, batteries quietly moved home with a job boom that proves action speaks louder than pundits.
Policy and Future Outlook
- Reshoring Initiative projects 400,000+ annual job announcements through 2025 due to policy tailwinds
- 88% of executives plan to reshore or nearshore by 2025 per Kearney survey
- CHIPS Act will drive $200B+ private investment in US semiconductors by 2030
- Inflation Reduction Act allocated $369B for clean energy manufacturing, spurring 100,000+ reshoring jobs by 2030
- IIJA infrastructure bill to create 1.5M manufacturing jobs by 2026 through domestic content requirements
- 92% of reshoring in 2022 cited supply chain risk reduction as primary motivator post-COVID
- BCG predicts US manufacturing reshoring to add 2-5% to GDP growth by 2030
- McKinsey forecasts 25% of global companies to reshore by 2025 due to geopolitics
- USITC estimates tariffs prompted $50B annual reshoring investment since 2018
- Deloitte predicts reshoring to double US manufacturing employment share to 15% by 2030
- EU reshoring index up 25% in 2023, but US at 3x pace
- US manufacturing to grow 2.5M jobs by 2030 per Reshoring Initiative forecast
- 70% of Fortune 500 plan reshoring investments by 2025 per survey
- Buy American provisions to drive $100B annual domestic procurement
Policy and Future Outlook Interpretation
The relentless reshoring drumbeat, fueled by strategic policy and a post-pandemic aversion to supply chain whiplash, is now less a cautious experiment and more a full-scale industrial homecoming that could fundamentally rewire the American economy.
Sources & References
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- Reference 12SEMICONDUCTORSsemiconductors.orgVisit source
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