What's Happening?
A survey conducted by the Reshoring Initiative and Regions Recruiting found that a stronger skilled workforce in the U.S. would significantly boost reshoring efforts. The survey revealed that OEMs would reshore 30% of their products currently offshored if a larger skilled workforce were available. Other factors such as tariffs, currency value changes, and tax cuts also influence reshoring decisions. The lack of trained workers could hinder U.S. reindustrialization, with millions of manufacturing jobs forecast to go unfilled by 2030.
Why It's Important?
The findings highlight the critical role of workforce development in reshoring efforts and strengthening the U.S. economy. A sufficient skilled workforce would reduce geopolitical risks, make supply chains more resilient, and generate well-paying manufacturing jobs. The survey underscores the need for a national industrial policy focused on workforce development, cost leveling, and regulatory reduction to enhance reshoring success.
Beyond the Headlines
The emphasis on workforce development may lead to increased investment in education and training programs, supporting long-term economic growth and industrial competitiveness. The survey results also suggest a shift in sourcing strategies, with manufacturers considering the benefits of localizing production near engineering and quick deliveries. This could lead to a reevaluation of global supply chain dynamics and increased collaboration between OEMs and contract manufacturers.
