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US Reshoring: A process on the rise

By ES outlook

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In the last one year the US managed to gain nearly 10,000 jobs which had been outsourced to various countries. This number was taken from the report produced by the Reshoring Initiative, a group that keeps track of the outsourced jobs and the jobs that have returned to the United States. The report states that the total number of jobs that have returned last year which comes close to 60,000 indicates a 400% increase since 2003. This new Reshoring statistic has brought to light a possibility of a new trend for the US market to bring back jobs. While Reshored jobs saw a rise of 10,000, the outsourcing market in the US saw a huge decline last year with the total number of outsourced jobs lying between 30,000 and 50,000. This marks a turning point in the outsourcing industry in the US which generated a revenue margin of over $100 billion.

With the US outsourcing industry now slowly showing signs of decline, will pave way to reshoring which will bring back all the outsourced jobs back to the US but only at a very slow rate, according to Harry Moser, president of Reshoring Initiative. “We say the bleeding has stopped, but the country should still be on life support” he quoted. While the Reshoring process will take some time to bring all the jobs back home, there are several factor that could influence and speed up the process, like automation which can reduce the need for outsourcing thereby creating a competitive platform for reshoring, according to the report. 

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