Reshoring

Reshoring is the big word in today's world and it means bringing jobs back home. From 1970 until 2010 the US transferred 7 million manufacturing jobs overseas mostly to China. This was a business boom for US companies but a disaster for factory workers. The CEO's saw their salaries sky rocket at the expense of factory jobs. Politicians, who publicly championed the workers, sat silently while these jobs disappeared. This problem was brought to the attention of the public by Trump who even before he decided to run for office complained about China's unfair trade practices which accelerated in 2001 when China was allowed into the World Trade Organization. Trump being a real estate developer was well aware of the methods that China used to gain advantage. Once in office Trump trumpeted his concerns which led to the passage of USMCA a free trade agreement between the US, Mexico and Canada. In 2010 only 5,200 manufacturing jobs were reshored but by 2014 that number rose to 95,000 and 150,000 by 2020. In 2021 that number increased to 240,000 and 360,000 by 2022. These figures continue to rise and were spurred on by the passage of the Inflation Reduction Act and the Chips Act. Many Asian companies are building in Mexico to escape import taxes and Mexico will be the fastest growing economy over the next ten years. As the US industrial economy doubles in the next ten years the more skilled jobs will be in the US and the lower skilled jobs in Mexico.