Re-shoring efforts bring manufacturing jobs back to the US

One of the most controversial buzzwords of the last five years is “outsourcing.” The practice, which has become a standard procedure for many of the largest companies, involves relocating American manufacturing jobs to other countries where labor and production costs are not as high.

During the height of the recession, a number of businesses pursued such measures, but as the economy realigns with pre-2008 levels, the United States is seeing more and more manufacturing jobs come back to the country in what’s being called “re-shoring.” More jobs means more positions to fill, and manufacturing recruiters can help firms locate the best domestic talent for these openings.

Obama focuses on bringing jobs back
During his recent State of the Union address, President Barack Obama spoke of the reemergence of the American manufacturing industry as a key factor behind the decision for major corporations to consider re-shoring operations. A more competitive business climate and a better economy, among many other factors, has led companies like Apple, Google, General Electric and Ford to boost production domestically.

“Our first priority is making America a magnet for new jobs and manufacturing,” Obama said.

Already, the nation is feeling the effects of the great jobs migration back to the States. The January reading of the Institute for Supply Management index on U.S. manufacturing grew 2.9 percent from December 2012 to stand some three points above the threshold for expansion. Employment in the industry was up significantly, as the index component rose to 54 percent last month.

Writing for the Wall Street Journal’s MarketWatch, Jeffry Bartash said since 2010, the United States has added nearly 500,000 manufacturing jobs, an increase of 4.3 percent. While the recession shed millions of manufacturing positions, the steady gains the country has made in bringing these jobs back has paid off in the short term and is expected to reestablish the nation as a manufacturing mecca in the future.

Obama laid out a number of policies he wishes to pursue during his second term in regard to boosting manufacturing re-shoring, including a permanent extension and 20 percent increase of the research and experimentation tax credit and investing in communities and localities to spur manufacturing growth.

While the trend is still in an infancy stage, one economic analyst told Bartash the re-shoring effort could lead manufacturing to generate 20 percent of growth in the U.S. economy during the next decade, as opposed to the 13 percent it currently drives.

Increased production, expanded operations and growing employment all make for a ripe atmosphere for manufacturing to reassert itself on the national stage. Manufacturing recruiters can help firms find the top talent they need to drive success.
 

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