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Made in the USA: U.S. production trends to watch

April 30/May 7, 2018: Volume 33, Issue 23

By Lindsay Baillie

Approximately eight in 10 American consumers say they would rather buy an American-made product than one that’s imported, according to a recent Consumer Reports survey. This is great news for manufacturers already in the U.S. manufacturing game as well as those just now entering. What’s even better is the same survey found that over 60% of consumers are willing to pay 10% more money for American-made goods.

U.S. manufacturing is important to the U.S. economy because it not only has the potential to increase business growth, but also add value to the power of the country’s economy and is an essential component of gross domestic product (GDP).

When looking at U.S. manufacturing trends, domestic production was actually a larger component of the U.S. economy than it is today. Products made in the U.S. drove approximately 11.7% of economic output in 2016. Back in 1970 it was 24.3%. This change, experts say, is the result of multiple factors, including a shift to a service-based economy, growth in the healthcare sector and the high U.S. standard of living—to name a few.

Despite this decrease, U.S. manufacturing is currently the largest in the world, producing 18.2% of the world’s goods, according to Kimberly Amadeo, author and president of worldmoneywatch.com. While U.S. manufacturing is still on the rise, it is continuously threatened by high operating costs, which provides an advantage to other countries. For example, China is currently producing 17.6% of the world’s goods.

One major benefit to producing goods in the U.S. is it is easier for manufacturers to reach the North American market, proponents say. In fact, according to a survey by AlixPartners, 37% of manufacturers prefer the U.S. precisely for this reason. Interestingly, that percentage is the same for suppliers who prefer Mexico.

Looking ahead, manufacturing is forecast to increase faster than the general economy, according to Amadeo. Production is estimated to grow 2.8% in 2018 and is expected to slow to 2.6% in 2019 and 2.0% in 2020.

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Made in the USA: Report card on Trump manufacturing policies

April 30/May 7, 2018: Volume 33, Issue 23

By Reginald Tucker

Last spring FCNews reached out to Harry Moser, president and founder of the Reshoring Initiative—and an authority on all things related to U.S. manufacturing and onshoring trends—to get his take on the Trump Administration’s strategic approach to boosting America’s manufacturing economy. We followed up with Moser a year later to see how he scores the president in this regard.  

In last year’s “Made in the USA” special edition, Moser cited several governmental initiatives/ actions that would have to take place in order to bring more jobs back to the U.S. At the top of the list was the president’s decision to lower corporate tax rates. Moser gives Trump high marks on this issue, calling it a “big move.” However, he believes a 15% tax rate would have been better. “Part of the impact is psychological,” Moser told FCNews, adding that “companies are not wanting to pay much higher taxes here than in all other countries.”

On reducing regulatory restraints in business, another key component of Trump’s economic initiatives, Moser says it’s a “good start.” (See “Room for improvement” section below.)

Another key promise made on the campaign trail was to restructure what he considers lopsided trade deals with America’s largest trading partners. Moser’s take? “The [stats] that have come out on U.S. duties being much lower than those charged by other countries are damning. We have not yet made significant changes, however. Similarly, we face VATs offshore and do not apply a VAT—which is typically 15%. This is far more important than duties.”

By and large, Moser is very encouraged with what he’s seeing so far, although is not overly “impressed by the technique,” he noted. In terms of grading, he gives Trump an “A+ for effort and a B+ on domestic issues such as taxes. Otherwise, incomplete.”

But when it comes to the bottom line impact on U.S. manufacturing, Moser says the numbers don’t lie. His research shows reshoring and foreign direct investment (FDI) manufacturing job announcements reached 171,000 in 2017—that’s up 50% from 2016 and 2,800% from 2010 (see chart).

Room for improvement

Despite signs of early progress, Moser believes more can be done. To that end, the Reshoring Initiative is advancing a national policy “competitiveness toolkit” to balance the $700 billion/year U.S. manufactured goods trade deficit. This toolkit, according to Moser, would achieve the following:

  1. Level the playing field. Create a vetted national policy tool to select optimal actions to bring back the desired number of manufacturing jobs with the least collateral damage.
  2. Debunk key myths. Overcome the wide belief that the U.S. cannot—and will never again—produce many of the products that have been lost to offshoring. The key is to show that there is a path to adding millions of manufacturing jobs.
  3. Create a “unified, quantified” economic proposal. Moser believes we need to advance from the “current condition that many groups are proposing without quantifying the impacts of their suggested solutions.”

The Reshoring Initiative has also developed an Import Substitution Program (ISP), which enables economic development professionals to replace imports with local production by helping U.S. companies decide to reshore and foreign companies to invest in their respective regions. In short, ISP is designed to stimulate FDI and reshoring while helping to strengthen producers’ positions with minimal incentives, fortify local supply chains around OEMs and bolster workforce programs.

Manufacturers are invited to utilize free tools from the Reshoring Initiative to re-evaluate offshoring by visiting reshorenow.org. The group also welcomes reshoring case histories from the flooring sector.

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Made in the USA: U.S. suppliers leverage advantages of domestic production

April 30/May 7, 2018: Volume 33, Issue 23

By Mara Bollettieri

Many domestic flooring suppliers cite numerous advantages in producing stateside. A huge benefit that Don Finkell, CEO of American OEM, pointed out is the ability to respond quickly to changing design trends in the industry. “We are closer to the market, so we are more aware of consumer preferences,” he explained. “In addition, consumer trends favor locally made products. American made has become a whole movement of its own.”

Others cite much shorter lead times as being a key benefit. “We have the ability to deliver product for large installations within four weeks,” said Michael Raskin, CEO of Raskin Industries. “In addition, we can fill in our domestic inventory to support distribution and our distributors can bolster their supplies if needed, which provides excellent support and turnaround.”

Matt Rosato, director of portfolio management, Anderson Tuftex, concurred. “When you have domestic production vs. something that’s sourced overseas, we are more agile and able to quickly hit lead times, especially for some project work. If it’s overseas, you’re looking for, after production time, 12-16 weeks of transit time into the U.S., where we can turn it around in a couple of days.”

For executives like Jimmy Tuley, vice president of residential resilient, Mannington Mills, being able to innovate and bring products quickly to market go hand in hand. “We’re also in control of our process. It’s one of the cores of Mannington—to be able to control your own destiny. And when you produce, you control that whole supply chain.”

Tom Lape, president, Mohawk Residential, can attest to that notion. Mohawk Industries is in the middle of a major push toward domestic production, with $700 million invested in five different plants. He noted that 90% of what the company produces is being sold right here at home. Beyond that, he said, “there is a high level of supplier reliability; the more you in-source, the more you create a more reliable customer and there are fewer big surprises.”

Onshoring creates jobs

Opening plants here at home, suppliers say, has increased the number of employees that suppliers need to hire. Paul Stringer, vice president of sales and marketing, Somerset Hardwood Flooring, shared that the number of employees has increased exponentially over the years now that the company has onshored production. “I started work at Somerset in 1999. At that time, we had roughly 225 employees; today, we employ more than 900 people throughout all of the Somerset operations.”

The creation of more jobs, in turn, sparks work in other industries as well, executives say, thereby stimulating the overall American economy. Mannington’s Tuley illustrates how opening plants throughout the U.S. has done precisely that. “If you look at a plant that’s growing and expanding, chances are there’s a restaurant in that area that’s opening, there are roads that are being worked on—all sorts of service industries spring up around manufacturing facilities.”

Anderson Tuftex’s Rosato also believes there’s a direct correlation between plant openings and the creation of jobs in surrounding communities. “We have a large project in Alabama with Shaw that we are investing millions of dollars in, stimulating local jobs in that state as well as other states in which we manufacture—be it California, South Carolina, Tennessee or Alabama. This is definitely impacting and increasing the workflow and job creation in those states.”

Don Maier, president and CEO, Armstrong Flooring, also feels his company is contributing to the increase in jobs in certain states. “Our domestic manufacturing supports local jobs, and we are a significant employer in many of the communities where our U.S. plants are located,” he stated.

Inherent challenges

Despite all the advantages to onshoring, there are some inherent challenges. The most prominent is the void associated with the rise in manufacturing job openings vs. the lack of a skilled workforce to fill those positions. Somerset’s Stringer can attest. “I think this new generation has frowned on factory work or production work,” he told FCNews. “Young people today want to work on computers or sit in front of a screen. They don’t see themselves doing physical labor.”

Vance Bell, chairman and CEO, Shaw Industries, concurs that finding employees in this modern age is difficult. However, he said, the company is trying to encourage people to work in this field. “We believe we have an opportunity to educate students about the rewarding careers available in manufacturing and the diversity of career paths they can take here at Shaw.”

But even in cases where you have skilled employees, there’s still somewhat of a learning curve—especially when opening up a new plant. “It’s extensive and it takes time to train people, to get equipment exactly how you want it,” Mannington’s Tuley said. “It’s a major undertaking to be able to do manufacturing in the U.S.”

Other challenges that suppliers face is the competitive pricing of products from overseas. “The most notable is the battle against cheap imports,” said Frank Douglas, vice president of business development, Crossville.

Some consumers, he noted, are indifferent when it comes to the whole Made in the USA movement, opting instead for less expensive goods.

Potential impact of tariffs

Many flooring industry executives say it’s too soon to tell whether policies instituted by the Trump Administration have helped accelerate domestic production (see related story on page 20). On some level, though, many feel the mere threat of U.S. tariffs on some Chinese imports could indeed enhance domestic production.

According to Gregg Link, senior director of product management, Dal-Tile, those who make products overseas may be at a disadvantage if these tariffs are enacted. But that’s a big if. “For those that don’t have manufacturing capability and have a heavier reliance on sourced goods—and in particular China—that’s obviously going to be something that they’re going to question,” he said. “I don’t think there’s any definite direction.”

American OEM’s Finkell sees the threat of tariffs on some imported goods as beneficial to Made in the USA. “I do believe that uncertainty around what President Trump will do with tariffs is helpful to the domestic industry. Prudent buyers are increasingly hedging their bets so as to not to have all of their eggs in the import basket if a trade war breaks out or significant tariffs are imposed on imported wood floors.”

Mannington’s Tuley is uncertain about the threats as well but feels those who onshore have the upper hand. “It’s so difficult to tell in our current environment what could happen. Certainly, tariffs could change the pricing structure of flooring products if they’re taxed in certain ways. And that could give companies that manufacture in the U.S. an advantage. But it’s so hard to predict what’s going to happen.”

Shaw’s Bell feels that regardless of whether the tariffs happen or not, Made in the USA is the way to go. “We just believe it makes economic sense for any company to have some level of in-market production for their products,” he said. “That is the overall trend globally.”

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Made in the USA: Domestic production hits its stride

April 24/May 1, 2017: Volume 31, Issue 23

By Ken Ryan

 

Screen Shot 2017-05-01 at 2.36.11 PMOn April 18, President Donald Trump signed an executive order directing federal agencies to implement the “Buy American, Hire American” rhetoric of his campaign. The executive order came as part of the President’s effort to prod U.S. businesses to invest more money domestically and create jobs for American workers.

If the President was looking for an industry that could serve as the role model for this cause, he might consider the flooring sector. Led by the major manufacturers, the flooring industry has been doing its part to bring manufacturing back to the U.S. and create thousands of new jobs.

Anecdotal research shows by the end of 2017, there will be 13 new LVT, sheet, rigid core and carpet plants completed in the U.S.—a testament to the so-called “reshoring” or onshoring movement—a term used to describe the return of manufacturing to U.S. shores.

Cathy Gundlach, vice president of merchandising for Flooring America/Flooring Canada, International Design Guild and The Floor Trader groups, said there is a lot to like with this trend. “We continue to see manufacturing plant investments and openings into the U.S. marketplace for the production of flooring from our key suppliers, which in turn is growing the assortment of Made in USA goods available to our consumers.”

Industry observers say onshoring is rapidly gathering steam among flooring manufacturers. While full capacity has been slowly ramping up, executives point to 2017 as the year when production really gains a head of steam.

What manufacturers are doing
Shaw has invested significantly in manufacturing capacity with the recent completion of its new LVT facility in Ringgold, Ga.; the opening of a new carpet tile facility in Adairsville, Ga.; the expansion and modernization of an extrusion facility in Columbia, S.C., and the expansion of its hardwood manufacturing facility in South Pittsburg, Tenn. “In 2017, we’ll truly begin to see the benefit of those investments with each entering a full year of operation,” said Randy Merritt, president. “That gives us even greater ability to meet customers’ quality and service needs with a diverse portfolio of products.” In addition, by the end of 2017, Shaw will have completed its 67,000-square-foot Create Centre in Cartersville, Ga., which will house the commercial division’s marketing and design teams.

Mannington, which launched its “Let’s Make Some Noise” campaign promoting domestic manufacturing back in 2011, now has its production tentacles spread throughout the U.S. The company manufactures all residential and commercial sheet vinyl as well as VCT in Salem, N.J.; all laminate in High Point, N.C.; all carpet in Calhoun, Ga.; all rubber in San Jose, Calif., and Eustis, Fla.; more than 80% of hardwood in Epes, Ala., and High Point, N.C.; and most LVT in Madison, Ga.

Not to be overlooked, Armstrong continues to support U.S. manufacturing. Alterna, its highly successful engineered stone, is produced in Kankakee, Ill. This is in addition to the LVT plant it added in Lancaster, where the company repurposed an unused building and outfitted it with state-of-the-art equipment to manufacture Vivero luxury flooring and Natural Creations with Diamond 10 technology.

Mohawk operates domestic manufacturing facilities for every category of product—including carpet, hardwood, laminate, ceramic and resilient—and has a footprint that stretches from coast to coast. It recently expanded its plant in Melbourne, Ark., to be the only one in the country capable of producing both solid and engineered prefinished hardwood flooring with larger dimensions and more characteristic styling. Meanwhile, Mohawk’s divisions are making big news with new production facilities popping up all over. IVC’s Moduleo LVT collection is U.S. made. Dal-Tile’s plant in Dickson, Tenn., has reached full production and is making color-body porcelain that will boost capacity and technical capabilities.

Other tile companies such as Crossville and Florida Tile are growing their U.S. production roots. The latter’s manufacturing plant, distribution center, corporate offices and showrooms are all located in the U.S. Florida Tile has joined over 180 other domestic building product manufacturers in the “We Build American” initiative.

Mullican recently announced plans to bring full production of all sawn engineered products to the U.S. beginning early summer 2017. Plans to transition additional overseas production to the U.S. will be announced in Q3. “Since 2012 we have converted much of our engineered hardwood production from imported to domestically manufactured product,” said Neil Poland, president, Mullican Flooring. “The transition of our sawn lines to the U.S. is a natural extension of that movement.”

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Made in the USA: What ‘Made in USA’ actually means

April 24/May 1, 2017: Volume 31, Issue 23

By Lindsay Baillie

 

Screen Shot 2017-05-01 at 2.30.44 PMFor manufacturers, labeling a product as “Made in USA” involves much more than the item’s place of production. Protected by the Federal Trade Commission (FTC), all American-made products sold to U.S. civilians must pass a strict set of standards.

According to the FTC’s website, items labeled as “Made in USA” must be manufactured in the U.S. borders from “all or virtually all” American parts, with parts also made in the U.S. Furthermore, “all or virtually all” means that all significant parts and processing that go into the product must be of U.S. origin. That is, the product should contain no—or negligible—foreign content.”

While manufacturers must follow these strict guidelines when selling to businesses and civilians, the FTC designations are not considered when the U.S. government is the purchaser. The U.S. government is required to buy only American-made goods if possible. However—following the guidelines of the 1933 Buy American Act—this classification is given to any item assembled in the U.S. with more than 50% American-made parts.

Beyond the FTC’s rigorous guidelines for Made in the USA products, there is a gray area which hosts products that are “assembled” or “built” in America. Products with the “Assembled in USA” designation include imported parts that are manufactured in U.S. factories.

Deviating further away from the Made in USA label, some companies classify their products as “Made in USA of U.S. and imported parts” or “60% U.S. content.” Under these classifications, some of the parts and materials are made in the U.S.

As consumers become more interested with buying Made in the USA products, research shows some companies are manipulating labels to get around the strict FTC guidelines. When looking for completely USA-made products, FTC advises consumers to watch out for packaging that displays the United States flag, a map of the USA, the words “USA” or “American” in part of the brand name.

While many of these labels and names imply an American origin, they may be used to trick consumers who are looking to buy exclusively U.S.-made items. When approaching products with this type of packaging/ branding, experts say it is important to look at the fine print for the products’ true origin.

Beyond that, dealers and consumers can check to see if the product is genuinely Made in USA. Certified Inc. is an independent, third-party certification source and U.S. non-governmental organization, which verifies five distinct types of “Origin of USA” claims: “Made in USA Certified,” referring to manufactured goods; “Product of USA Certified,” concerning consumable and/or ingestible goods; “Service in USA Certified,” regarding services performed at a location exclusively within the USA and/or its territories; “Grown in USA Certified,” associated with items such as flowers, plants, produce, etc.; and “U.S. Labor Force,” used to identify when all labor strictly associated with the assembly of a product is performed within the U.S.

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Made in the USA: Survey says- Cost often trumps nationalism

April 25/May 2, 2016; Volume 30, Number 22

Screen Shot 2016-04-28 at 12.53.31 PM
Americans may love their country, baseball and apple pie, but when it comes to their wallets they would prefer lower prices instead of paying a premium for items labeled “Made in the USA.” These findings are based on a poll recently conducted by the Associated Press and GfK Public Affairs and Corporate Communications, a division of GfK Custom Research North America, between March 31 and April 4.

Flooring dealers interviewed by FCNews were generally in agreement that while Made in the USA is just one factor in the purchasing process, it is not the determining factor. Case in point: Dave Snedeker, divisional merchandise manager, flooring, Nebraska Furniture Mart, believes Made in the USA is a strong motivator at certain price points only. “As you move up in price points it becomes more about the style and design and less about country of origin,” he said. “[Made in the USA] still has value to customers and staff but it seems to be just one of the factors used to finalize the sale.”

Screen Shot 2016-04-28 at 12.53.26 PMPerhaps one reason for this sentiment is incomes have barely improved in recent years, forcing many households to look for the best bargains instead of goods made in the USA, which traditionally cost more to produce. As the Associated Press-GfK survey reveals, 71% of people polled said they would like to buy U.S.-made goods but they are often too costly or difficult to find. Meanwhile, only 9% said they would buy items made in America even if they cost more.

On the subject of a Free Trade Agreement, often referenced during the 2016 Presidential campaign, Americans are slightly more likely to say free trade agreements are positive for the economy overall than negative at 33% to 27%. But 37% say the deals make no difference. Republicans (35%) are more likely than Democrats (22%) to say these agreements are bad for the economy. On jobs, 46% say the agreements decrease jobs for American workers, while 11% say they improve job opportunities and 40% abstained. Pessimism was especially pronounced among the 18% of respondents with a family member or friend whose job was offshored. Sixty-four percent of this group said free trade had decreased the availability of jobs.

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Made in the USA: Tips on promoting domestic products

April 25/May 2, 2016; Volume 30, Number 22

Screen Shot 2016-04-28 at 12.51.53 PMJared Bradford, sales manager at Alabama-based Brian’s Flooring and Design, said customers today are asking more questions about a product’s country of origin and its environmental attributes. “This has raised the awareness of our salespeople to take a greater interest in the product and how it is sourced.”

The fallout of the CBS “60 Minutes” report on Lumber Liquidators selling Chinese laminate containing high levels of formaldehyde has given independent dealers a chance to turn the conversation to Made in the USA products. “I believe the Made in the USA movement is even stronger now since the debacle of Lumber Liquidators and the negative press associated with their imported products,” said Nick Freadreacea, president of The Flooring Gallery, with five stores in the Louisville, Ky., market. “There is the security of knowing the materials used meet all the safety standards for both the consumer and the retailer selling the product.”

Here are five tips used by dealers to promote Made in the USA:

1.Share stories. It’s one thing to say a product is made in the USA; it is quite another to explain the wood product you are looking at comes from sustainable forestry that was carefully planned and harvested in the Appalachian region and manufactured in Tennessee; or that Old World Amish artisans painstakingly handscraped each panel to ensure rich detail and uniqueness.

2.Philanthropy. Flooring America is a sponsor of Pets for Patriots, a charity whose mission is to make the joys of pet ownership achievable and affordable for service members and veterans of the U.S. military. Pets for Patriots connects veterans returning from deployment, active personnel looking to fill the void for their families while deployed, and long-term veterans in need of a constant companion with adult and other at-risk shelter pets needing a loving home.

Many flooring dealers, including Robinsons Carpet One in Fresno, Calif., show their patriotism through efforts such as Homes for Our Troops, a non-profit organization that provides mortgage-free homes for wounded veterans. Robinsons, for example, donates the labor for installation of all the flooring.

3.Tell consumers why. Dealers shouldn’t hesitate to tell consumers why buying an American-made product is better than purchasing one made overseas. Promote the quality of the American-made laminate or hardwood offered and emphasize that it is CARB 2 compliant or has zero VOCs. Buying American-made products also means jobs stay here—and that is good PR for a store.

4.Use digital tools. The “about” section of a dealer’s website is a great place to share a company’s history and values. Through social media there are many ways to promote Made in the USA, experts said, from posting product photos to Twitter, Facebook and Instagram to adding #MadeInTheUSA to a product description.

5.Tell your story. Many flooring retailers are multi-generational businesses that have served their local communities for decades. As such, they are living out the American dream. Celebrate that history and heritage with customers.

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Made in the USA: Flooring America leverages the product quality angle

April 25/May 2, 2016; Volume 30, Number 22

By Ken Ryan

Screen Shot 2016-04-28 at 12.48.42 PMShortly after the “60 Minutes” expose on Lumber Liquidators that charged the retailer with selling laminate flooring from China containing high levels of formaldehyde, Flooring America sprung into action by purchasing Made in the USA point-of-purchase (POP) kits for all of its members to display in the stores. A variety of formats are available to retailers to accommodate different configurations.

“I’m pleased to say the investment we made in sending these Made in the USA kits to all of our members certainly paid off,” said Keith Spano, president of Flooring America. “Our members were very appreciative of our quick reaction and it certainly helped differentiate Flooring America from other flooring retailers.”

Spano said the “60 Minutes” report accomplished two things: it soured consumers on certain imported flooring products and it elevated the stature of Made in the USA products.

“As Benjamin Franklin famously said, ‘The bitterness of poor quality remains long after the sweetness of low price is forgotten.’” In order to instill confidence in the consumer, Flooring America marked all of its domestically made products accordingly and provided members with letters from the vendor partners stating their CARB 2 compliance. “This gives our customers peace of mind they are buying a quality product furthered by the fact that Flooring America provides a lifetime installation guarantee to give her additional assurance she’ll be happy with her decisions for the life of the product,” Spano stated.

In addition, Flooring America updated its Product Gateway database to include country of origin on all products so retailers can keep consumers informed.

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American manufacturing makes a comeback

April 27/May 4, 2015; Volume 29/Number 2

By Ken Ryan

Screen Shot 2015-05-29 at 5.07.01 PMThe often-repeated notion that the U.S. doesn’t make anything anymore—that the country has become a service economy rather than a manufacturing economy—isn’t exactly true nowadays. In fact, the U.S. produces about ¾ of all the manufactured goods it consumes, according to the Boston Consulting Group.

Some companies continue to resist the outsourcing trend, even in industries that have fled the U.S. such as large appliances, electronics and apparel.

In 2000, Michigan-based Whirlpool manufactured most of its front-loading washers in Germany. Now the company is in the midst of making a five-year, $1 billion investment in U.S.-based plants, facilities and equipment. Of the products Whirlpool sells in the U.S., it makes 80% in domestic plants. And it continues to ramp up production of front-loaders in Ohio, where it already makes dryers, dishwashers, freezers and top-loaders.

Few TVs, cell phones or digital cameras are made in America, but in 2014, Apple began making one of its existing Mac lines in the U.S. China-based Lenovo, the world’s second-largest personal computer maker, has begun making some PCs in North Carolina, standing apart from a crowd “that has seen electronics manufacturing jobs migrate overseas for more than two decades,” the company said. Element Electronics, an American company, has been assembling LCD TVs in its Detroit factory since January 2012. The company said that opting for domestic production was “an emotional decision . . . maybe even a patriotic choice.”

More than 90% of clothes and shoes sold in America are made elsewhere, according to Houston-based Plunkett Research. However, the industry is gaining traction in the U.S. There is continued growth among designers with output too small to attract the interest of international manufacturers, and among those who simply want to be part of the Made in America movement.

Industry experts cite rising wage rates in China, higher shipping rates and lower U.S. energy prices for the recent spate of shoring moves. According to Harry Moser, founder of the Reshoring Initiative, an industry-funded nonprofit that promotes U.S. manufacturing, more U.S. companies would shift production from abroad if they analyzed the costs of overseas production to include such things as the shuttling of executives abroad and holding large inventories as a hedge against supply disruptions.

For whatever reason—patriotism or cost benefits—2014 saw an increase in manufacturing jobs brought back to the U.S. The Reshoring Initiative said in April that the U.S. realized a net migration of at least 10,000 manufacturing jobs back to the country in 2014, and that more than 60,000 manufacturing positions either returned to the U.S. from overseas or stemmed from foreign direct investment.

In addition, the analysis showed a 400% increase in reshored jobs in 2014 compared to 2003, when the country lost a net 140,000 positions to offshoring.

The group said the reshoring numbers were strongest in Texas and the Southeast, where companies tend to develop new factories in states with lower wages and taxes.