Manufacturing reshoring combined with foreign direct investment (FDI) has grown steadily since 2010, with job creation rising at a 25% compound annual rate through 2025. Annual reshoring and FDI-related jobs increased from 11,000 in 2010 to approximately 240,000 in 2025. This growth reflects policy actions under the Trump and Biden administrations, and companies’ increasing awareness of the costs, risks and supply chain exposure of offshoring. Half of these jobs have been created in small-business supplier networks.
With more coordinated industrial policy, the reshoring rate could double, increasing U.S. manufacturing output by ~40% by 2040 and potentially eliminating the $1.2 trillion goods trade deficit.
Root Causes of Offshoring
Results from a recent Plante Moran survey, as well as the 2025 Reshoring Survey, show that manufacturing costs are the primary driver of offshoring and the main barrier to reshoring. U.S. manufacturing costs average 10%-20% higher than those in most other developed countries and 50% higher than China, encouraging companies to source components and finished products offshore. Incentives and tariffs only partially offset these disadvantages.
As we celebrate the country’s 250th anniversary and commemorate the Declaration of Independence, we are reminded of the nation’s foundational ideals rooted in freedom, self-reliance, equality and human potential. Those ideals are essential to a healthy domestic manufacturing industry, and manufacturing is essential to our American identity and economic and national security.
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