Some evidence that suggests the reshoring of manufacturing is real:
- First, America is bringing factory jobs home at a historic rate. According to one estimate, the U.S. is on pace to reshore 350,000 jobs in 2022, the highest total on record and an increase from roughly 260,000 last year.
- Second, the construction of new U.S. manufacturing facilities has soared by 116% over the past year, versus a 10% jump for all building projects combined.
- Third China is the top source of U.S. factory jobs reshored since 2010 (44%), followed by Mexico (21%), Canada (10%), India (5%), Japan (5%) and Singapore (3%). But Beijing’s importance to global industrial supply chains is unchanged. China’s share of global manufacturing output (~30%) has held steady from 2017 to 2021, despite a trade war with the U.S. and the pandemic. Its share of global exports by value has actually risen from 12.5% to 15% during that period.