In 2024, about 244,000 jobs were announced tied to reshoring in the U.S. and foreign direct investment (FDI), a key metric in the push to revitalize domestic U.S. manufacturing strength, according to a new report from the Reshoring Initiative.
Job creation due to reshoring and FDI reflects the long-term impact on employment and local economies in the U.S. and signals a reversing of the job losses from the many decades of offshoring to foreign countries.
The job creation from reshoring and FDI was driven by a variety of issues including:
- Shortening supply chains
- Reduce geopolitical risks
- Avoid costs from tariffs
Jobs coming back
According to the Reshoring Initiative, reshoring in 2024 outpaced FDI by the widest margin to date and it was the largest margin recorded since it began tracking reshoring in 2010. To date, more than 2 million jobs have been announced since 2010 directly related to FDI and reshoring. Of those, about 1.7 million have been filled, Reshoring Initiative said.
The initial million jobs took 10 years to return to the U.S. and was driven by gradual recognition of the costs and risks associated with offshoring. The accelerated rate of 1 million jobs in the last four years was due to the added impact of government funding such as the Inflation Reduction Act and CHIPS and Science Act initiated by the Biden Administration.
Additional jobs were created due to companies realizing the increasing geopolitical risks within the global supply chain, the Reshoring Initiative said.
The key factors in driving reshoring and FDI in 2024 included:
- Government incentives
- Skilled workforce
- Proximity to market
- Supply chain risk
- Impact on domestic economy
Looking ahead to 2025
But these reasons are quickly changing after a change in U.S. government leadership in 2025. According to the Reshoring Initiative, the top reasons for reshoring include:
- Proximity to market
- Government incentives
- Impact on domestic economy
- Skilled workforce
- Infrastructure
- Tariffs
The Trump Administration’s goal to “reindustrialize America” in 2025 will likely lead to more reshoring and FDI.
Already, the Administration worked with Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest semiconductor foundry, to invest $100 billion investment in its Arizona cutting-edge gigafab. While some of this was previously announced as part of the CHIPS Act, the further investment will lead to more jobs in the U.S.
Other deals were officially approved by the Trump Administration that began under the Biden Administration including:
- TI’s $60 billion multi-fab investment.
- GlobalFoundries $16 billion reshoring effort.
- Micron’s $200 billion U.S. investment in new fabs and R&D.
The policy of importing less and producing more is likely to encourage further reshoring and FDI in the coming years, the Reshoring Initiative said.
While job announcements in the first quarter of 2025 are trending lower, more announcements will likely follow in the second half of the year depending on the tariff situation and if a long-term policy framework is finalized. Without this, the Reshoring Initiative said, companies may be hesitant to increase U.S. manufacturing.
