Can Incentives Take a Site from Good to Great?
Over 160,000 new manufacturing jobs were added to the U.S. in 2020, compared 110,000 in 2019. And for the first time since 2013, reshoring activities created more manufacturing jobs in the U.S. than foreign direct investment (FDI). FDI fell sharply in 2020, no doubt due to travel restrictions imposed from the pandemic.
The two most important factors cited in the latest reshoring report for companies investing in manufacturing in the U.S. via reshoring or FDI are:
- Proximity to customers and market
- Economic incentives
The importance of customer proximity has been validated throughout the pandemic, but how valuable are incentives to a company’s bottom line?