Why U.S. Companies Are Reshoring Jobs From China at Record Levels

After decades of outsourcing jobs to China and Southeast Asia, American companies like Intel and Micron are reshoring, or bringing jobs back home, to the U.S. and opening up new factories. Even foreign companies like Honda are moving into the U.S. to build EVs, develop semiconductors and more.

New data show that firms are reshoring at the fastest pace in history. That’s thanks in part to the U.S.-China trade war and rising tariffs as well. But I'll also explain why it may not be the big win blue-collar American workers have been hoping for.

0:00 U.S. companies are on pace to reshore 350,000 jobs in 2022, the highest rate ever
0:33 Why is this happening?
1:29 What record reshoring rates could mean for the U.S. economy
1:50 Why this trend may not be an outright win for blue-collar American workers

I’m Dion Rabouin, a WSJ reporter covering markets and the economy. I’ll be diving into all things finance, from the popular and well-known — like crypto and stocks — to the complex and intricate — like leveraged loans, derivatives and private equity. Subscribe to join me as I take a deep dive into what’s making money move and why it matters.

#Reshoring #Jobs #DionRabouin

[DionRabouinWSJ]

Do you think the reverse of globalization will be a good thing for the U.S. economy?

[infinityorigami]

Keep educating us with these true realities!!! Thanks Always!!

[nomaticors]

We didn't just give jobs to other countries. We gave them our pollution.

[mmrgratitudes]

In the future we will need more highly skilled workers, even in manufacturing jobs. So, skills that need more associates degrees, or highly trained apprenticeships. That means education needs to change in order to meet demand. This is a good thing. Not everyone needs a college degree. We can train a highly skilled manufacturing labor force. Robots can do menial tasks at a lower cost and better consistency 👍🏻

[alexander]

I could see more critical and value added industries coming back to the US. But, I think we will continue to outsource low value, monotonous manufacturing to other places. Probably countries closer to home like Mexico, South America, etc…

[ihmpall]

The common misconception that companies only go to China cos it’s cheap doesn’t go away. That stopped decades ago India is way cheaper for example. Companies like China because you can setup an industry in almost no time in China and it has a large labor pool of technical people specializing in specifics of the production line and hock can’t be found anywhere in the world because of years of Chinese domination in manufacturing.

[Sulfen]

I think it wasn't completely a bad thing that these jobs were sent overseas. Back then manufacturing wasn't nearly as good as today so it made sense in order to scale production. But today we have robots that facilitate the menial work so it's a good idea to start bringing back manufacturing and hiring people to upkeep the factories.

[ogJbizz]

Look forward to your videos every week! Approachable without sacrificing depth.

[asaddat]

Love your quotes at the end as always!

[dying_allthetime]

Trying to correlate wealth inequality with automation is just that, a correlation, not a causal link.

[Luther_Luffeigh]

I think that study about robotics and inequality needs its own video…there seems to be a lot to unfold there

[smkumar]

Excellent Dion keep it up. Do video on dxy and gold.

[leonvla]

JID reference was so on point, great explanation!

[tanchye]

The cost of a refrigerator from the West is expensive in my country Singapore, 3+ time more expensive than those made in the East, China, Vietnam, Malaysia, Thailand or Indonesia.
Labour cost are cheap here in the East.
Rich people buy these American or German made because it’s more ‘reliable’ traditionally.
American will have to pay much more due to high labour & materials cost if these are only manufactured in America and sold to American.
Hope this will not be ‘out of the frying pan and into the fire, scenario.

[-TheMaskedMan-]

Now I dear someone to tell me that Real-estate prices will decrease because of this 🤦‍♂️. House prices are going to keep going up especially if other companies are trying to build on our soil.

[maryw]

You forgot to address the elephant in the room that is the sales restrictions placed on tech companies to competing economies. We're taking one step forward and three steps back.

[Mike-xyrn]

Very insteresting, thanks for the content🎉 are the used the data accessible in web somewhere?

[navajyotichetia]

This thing called re-shoreing becomes an antithesis to US overseas trade mechanism (and machinations for it). The US dollar is not guarenteed by gold or anything, it is a operational risk because accounts could be politically frozen, yet it is the foreign exchange currency for oil which is a common essential commodity. This enables the US to get value added products and commodities from other countries for the price of its paper (and the inflated amount stamped on its face). US economy is free to use and Americans have been using the resources of the world for free- through its foreign exchange mechanism. This is exactly what enabled to create 4 trillion dollars during the economically unproductive covid year 2020. US onshoreing and fiscal incentives for onshoreing is like opening a window in the prison cell for the welfare of the prisoner inside

[mcguigan]

We need to stop talking about automation threatening jobs. We have record low unemployment, despite decades and decades of automation. Income inequality is a different bag. But in terms of people having jobs, automation has not caused unemployment. We are at record low unemployment, that has to be acknowledged please

[bitcoindaddy]

Automation can create more jobs is like saying the there's going to be more lan lines n fax machines with more