The Reshoring Initiative recently published a report predicting that reshoring and foreign direct investment (FDI) job announcements for 2021 are projected to be 38% above an excellent 2020. This will be, by far, the highest yearly number recorded to date.
The projection of jobs chips, EV batteries, PPE, pharmaceuticals, and rare earths – the essential products that the Biden administration has focused on – represent 62,500 jobs. Without these products, there would be 157,500 jobs.
While some of the essential products would have come back without the Biden push, it is reasonable to state that the administration’s initiatives have driven some of the increase.
The report concludes that the underlying problem — domestic manufacturing costs are about 15% higher than Germany’s and 40% higher than China’s – needs to be dealt with. If we do not address this underlying problem, we cannot manufacture enough electronic products and EVs to absorb our subsidized chips and batteries.
The entire report is HERE