The U.S. manufacturing industry is experiencing a resurgence with reshoring taking center stage. Reshoring is the reversal of offshoring; it’s the practice of bringing outsourced jobs back to the U.S. In 2014, jobs from reshoring grew so quickly that roughly 10,000 manufacturing jobs were brought back to workers in the U.S. While reshoring jobs are still relatively small compared to the overall job market, they are a significant contribution to a boost in the manufacturing industry.

Reshoring has a ripple effect

Reshoring is influencing the health of the manufacturing industry overall, by helping to balance job flow. For example, while a handful of jobs come back to the states, the actions required to get them and maintain them also impact the manufacturing job market.

Domestic products are becoming a priority

People want to see more products made in the U.S.A. When given a choice, many consumers prefer to purchase items made in American, by Americans. The drive to buy local contributes to this desire to support the ingenuity of American business. Reshoring provides continuous improvement in operations management and in hiring decisions.

Corporations and communities are investing

Investment in skills training improves the ability of the United States to compete with other nations who may have less regulations or overhead costs related to manufacturing. Government action to boost this competitiveness includes: skills training, lower tax rates and end of offshore currency manipulation. In addition, reshoring is great PR. It shows that a company values the quality of its products and the vitality of its nation over profits. Reports on reshoring successes have encouraged corporations to invest in skilled workers right here at home, helping many who stepped away from the industry to see that their best career opportunities might again be in manufacturing.

Reshoring saves time and money

Reshoring is extremely beneficial when you have a specific geographic market. For example, GE rehsored appliance manufacturing when they learned they can save serious dollars by supplying the U.S. market from Kentucky instead of China. Importing products and parts can raise costs so much that the lower employment overhead just doesn’t balance out any more.  Since the U.S. is the world’s largest consumer market, it only makes good business sense for products to be produced close to where they will be consumed.

A recent survey of U.S.-based manufacturing executives found that more than half already have plans to bring production back to the U.S. or are actively considering it. That’s up about 15 percent from 2012. While the impact reshoring has on the manufacturing job market is limited right now, it’s poised to grow rapidly by the end of the decade. These new jobs will not only be in American factories, but also in services that support manufacturing, such as transportation, logistics and retail.

If you’re a manufacturing plant facing reshoring, a partnership with Pascoe Workforce Solutions can find you the employees you need to take on new, larger production quotas for jobs in Springfield MA and jobs in Hartford CT. We have access to experienced manufacturing leaders, ready to solve your production challenges as temporary, temp-to-hire or direct hire employees.

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