Are you optimistic about Made in the USA manufacturing in New York State? If so, is your enthusiasm data-driven? According to the Reshoring Initiative, 2014 was another strong year for reshoring and foreign direct investment (FDI). Longer-term trends are also positive. In a study of the period from 1997 to 2014, but primarily 2010 through 2014, the Reshoring Initiative examined 13 indices and concluded that there’s more to be excited about than the fact that “the bleeding of manufacturing jobs to offshore has stopped”.
Reshoring and FDI were strong in 2013, but grew a robust 20% in 2014. The U.S. economy is now gaining about 10,000 manufacturing jobs per year, and there are still a potential 3 to 4 million manufacturing jobs offshore. Over 50% of reshoring has been from China, and Chinese FDI alone has created over 10,000 manufacturing jobs in the U.S. Only Germany, led by its automakers and Siemens, provides more FDI. Reshoring is strongest in the southern states and Texas, but New York State is also posting notable gains.
Of all 50 states, NYS ranked eighth with 1165 re-shored jobs and third in terms of the number of companies that re-shored (10). The only two states with higher company counts were California (34), the country’s most populous state; and Ohio, a Midwestern manufacturing powerhouse (24). South Carolina led all 50 U.S. states with 7530 reshored jobs, but these jobs were spread across only eight companies. By contrast, the 1165 jobs and 10 companies cited in the NYS data reflect an average gain of 61 manufacturing jobs per company.
The Empire State also posted strong numbers for foreign direct investment. For jobs created, NYS finished seventh with 3372. In terms of the total number of companies, NYS tied Kentucky and finished in eighth place with 10. NYS also outpaced most other states in terms of jobs per facility (337). On average, only six other states created more. Now that you’ve seen the numbers, both for reshoring and FDI, are you optimistic about Made in America manufacturing in New York State?
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1 thought on “Reshoring, FDI, and NYS Manufacturing”
Thanks for mentioning the Reshoring Initiative
The Reshoring Initiative can help more companies see if reshoring is right for them.
In order to help companies decide objectively to reshore manufacturing back to the U.S. or offshore, the not-for-profit Reshoring Initiative’s free Total Cost of Ownership Estimator (TCO) can help corporations calculate the real P&L impact of reshoring or offshoring. TCO can be found here: http://www.reshorenow.org/TCO_Estimator.cfm