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The Top 5 States Benefiting From Reshoring

The Top 5 States Benefiting from Reshoring

The Top 5 States Benefiting from Reshoring

Welcome to Thomas Insights — every day, we publish the latest news and analysis to keep our readers up to date on what’s happening in industry. Sign up here to get the day’s top stories delivered straight to your inbox. According to Xometry’s latest American Manufacturing Resurgence Poll, 48% of CEOs have reshored some or all of their operations, representing a huge jump from last quarter’s figure of 35%. Conducted in partnership with Zogby Strategies and Forbes, this quarterly poll tracks decision-makers and C-suite sentiment at over 150 leading U.S. organizations, making it an excellent tool for gaining insight into the strategies of the nation’s leading businesses. Reshoring, the process of bringing manufacturing operations back to the nation where a company is based, has gained significant traction in recent years. Pandemic-related supply chain disruptions revealed some significant vulnerabilities in American manufacturing strategies, defects that policy-makers and business leaders aim to remedy through reshoring. Ongoing conflicts, such as Russia’s invasion of Ukraine and instability across Asia and Europe, have spurred CEOs to double down on reshoring efforts and bring their operations back stateside. While these efforts have benefited the U.S. job market as a whole, several states have become reshoring hotspots. Below are the five states benefiting the most from reshoring and why industries are choosing these locations. The 5 States Benefiting Most from Reshoring Trends When composing a list of the five states benefiting most from recent reshoring trends, we leveraged data from the Reshoring Initiative’s annual report. The Reshoring Initiative is a nonprofit organization committed to “bringing manufacturing back home.” In its annual report , the Reshoring Initiative utilized data on reshoring, nearshoring, and foreign direct investments (FDIs) in American manufacturing. As part of this report, researchers disclosed how many jobs were added to each of the top 20 states in 2022 and how many companies were projected to establish or reestablish manufacturing operations in these jurisdictions. This overview features the top five reshoring destinations in 2022. 1. Kentucky Last year, Kentucky added approximately 45,900 new manufacturing jobs as a result of reshoring efforts. In total, 44 businesses chose to reshore in the Bluegrass State. What Industries Are Moving to Kentucky? According to the Reshoring Initiative report, Kentucky propelled into the 2022 rankings’ top spot thanks to huge investments from electric vehicle (EV) manufacturing companies. Why Are Manufacturers Moving to Kentucky? Kentucky has business-friendly tax laws and, according to CNBC’s cost of doing business calculations , ranks as the number one place to do business in the nation. Additionally, Kentucky is located in the midst of a major distribution hub, making it easy for manufacturers to ship their goods to downstream links in the supply chain. 2. North Carolina In 2022, an estimated 106 companies reshored their operations to the Tar Heel state. In total, North Carolina added approximately 43,881 new jobs as a result of nearshoring, falling just behind Kentucky. What Industries Are Moving to North Carolina? Like Kentucky, North Carolina benefitted from major EV battery investments. Why Are Manufacturers Moving to North Carolina? EV battery manufacturers, and other businesses, are likely choosing North Carolina due to its favorable corporate income tax rates and accommodating regulatory requirements. According to the NC Department of Commerce, the state has the lowest corporate income tax rates in the nation. 3. Georgia In 2022, 51 businesses reshored their operations to Georgia. This resulted in the creation of over 32,000 new jobs in the Peach State. What Industries Are Moving to Georgia? Georgia also rode the EV battery wave into a top three spot on the Reshoring Initiatives annual report. Semiconductor manufacturers like Micron Technology Inc. and multinational liner shipping company Hapag-Lloyd also join the fold. Why Are Manufacturers Moving to Georgia? Georgia ranked fourth in CNBC’s 2023 Top States for Business report . The state ranked number one in infrastructure, indicating that it has the resources to help businesses relocate efficiently. 4. Ohio In total, reshoring created 23,904 new jobs for Ohioans. An estimated 76 manufacturers now call the Buckeye State home. What Industries Are Moving to Ohio? Various businesses are making their way back to Ohio, including electrical equipment and components manufacturers and chemical production firms. Why Are Manufacturers Moving to Ohio? In the CNBC report , Ohio placed outside of the top 10, coming in at number 12. However, it did rank fourth in cost of doing business and sixth in infrastructure, which makes it an appealing destination for reshoring businesses. 5. Alabama Alabama rounds out the top five, […]

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Daisie Hobson

Daisie Hobson is a Director at the Reshoring Institute and an engineer with many years of experience in manufacturing and project management.

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