Many corporations, money, and jobs are returning to the U.S.A., largely due to the reduction of the corporate tax from 35% to 21% (closer to the global average of 20%):
- Apple
is bringing back $38 Billion back to the U.S. after the tax overhaul. -
Source:
https://www.forbes.com/sites/kellyphillipserb/2018/01/17/apple-says-it-will-bring-cash-back-to-us-pay-38-billion-in-repatriation-tax/#62baf5592222
- Insulet Corp.; Total jobs reshored: 1,500 jobs;
States benefiting: Massachusetts; Industry: Biotechnology;
Headquarters: Billerica, Massachusetts; Insulet Corporation
manufactures insulin delivery systems. In 2017 the company announced it
would be moving the production of its flagship product -- the Omnipod,
a tubeless, waterproof insulin pump -- from China to a new facility in
Acton, Massachusetts. Insulet cited the area's skilled workforce and
rising labor costs in China as reasons for the move. If Insulet meets
earnings expectations for the next several years, the new facility
could employ as many as 1,500 workers by 2021.
- Element Electronics; Total jobs reshored: 1,500;
States benefiting: Michigan, South Carolina; Industry: Consumer
electronics; Headquarters: Winnsboro, South Carolina; In 2012, South
Carolina-based consumer electronics manufacturer Element Electronics
opened a new flat screen television factory in Detroit. The decision
was based on a need to consolidate the company's supply chain, and made
Element one of the only companies to manufacture televisions in the
U.S. Element also reshored production from China to Winnsboro, South
Carolina with an initial $7.5 million investment in a new plant that is
projected to lead to the creation of 500 jobs. The TV manufacturer
cited Walmart's pledge to buy $250 billion of U.S.-made products from
2013 to 2023 as a primary reason to relocate operations to the United
States.
- Gentex; Total jobs reshored: 1,600 jobs; States
benefiting: Michigan; Industry: Motor vehicle parts; Headquarters:
Zeeland, Michigan; Over the last several years, mirror manufacturer
Gentex closed its two plants in China and Mexico in an effort to
centralize production in Zeeland, Michigan. While labor was less
expensive overseas, the move to consolidate all stages of production in
one location is likely to reduce transportation costs and the risk of
manufacturing error. According to the Reshoring Initiative, the
company's reshoring efforts since 2010 amount to a total of 1,600 jobs
for U.S. workers.
- Amgen; Total jobs reshored: 1,600; States
benefiting: Rhode Island, TBD; Industry: Pharmaceuticals; Headquarters:
Thousand Oaks, California; In a January 2018 meeting with President
Donald Trump, Amgen CEO Robert Bradway announced that the firm was
planning to add 1,600 manufacturing jobs in the U.S. The announcement
came several years after the biopharma company cut approximately 15% of
its workforce and closed two U.S. manufacturing facilities in 2014 as
part of major cost-saving efforts. Most recently, Amgen announced in
February 2018 that it would invest $300 million in a new U.S. biologics
plant that would employ approximately 300 workers upon completion. An
April 2018 recent press release from the company named West Greenwich,
Rhode Island, as the site of the new facility.
- Merck & Co.; Total jobs reshored: 1,633 jobs;
States benefiting: New Jersey, TBD; Industry: Pharmaceuticals;
Headquarters: Kenilworth, New Jersey; In July 2017, the White House
announced that Merck, along with pharmaceutical manufacturers Pfizer
and Corning, have committed to making a joint investment of at least $4
billion in pharmaceutical glass manufacturing in the U.S. The
partnership will focus on the manufacturing of advanced pharmaceutical
glass packing, a technology used in the storage of injectable drugs, as
well as vials and cartridges, and is projected to lead to the direct
hiring of 4,000 U.S. employees across the three companies. Merck also
recently reshored approximately 300 jobs as part of its efforts to
consolidate its overseas operations in the U.S. The company relocated
the headquarters of its animal health division from Boxmeer, the
Netherlands to its campus in Summit, New Jersey in 2013 as part of a
larger restructuring effort.
- SolarCity; Total jobs reshored: 1,900; States
benefiting: New York; Industry: Energy production & storage;
Headquarters: San Mateo, California; In 2014, SolarCity announced a
deal with the State of New York that commits the company to invest
approximately $5 billion over the next 10 years in return for a $750
million construction subsidy that is projected to create at least 1,900
jobs. The investment is focused around the construction of a new
facility in South Buffalo. Without major government subsidies, domestic
manufacturing of solar panels has largely been prohibitively expensive,
as U.S. labor costs were too high compared to other countries. While
the project stalled for several years as SolarCity reevaluated its
timeframe and was taken over by Tesla, solar roof tile production began
at the new factory in December 2017.
- Polaris Industries; Total jobs reshored: 2,000;
States benefiting: Alabama; Industry: Transportation equipment;
Headquarters: Deerfield, Illinois; In January 2015, automotive
manufacturer Polaris Industries announced plans to build a $142 million
off-road vehicle plant in Huntsville, Alabama that will create an
estimated 2,000 manufacturing jobs in the area. The move was likely
prompted by the generous tax breaks offered by state and local
governments. Polaris is projected to receive approximately $80 million
in tax breaks from the city of Huntsville and state of Alabama upon
completion and staffing of the facility. The announcement comes several
years after the company was criticized for downsizing its plant in
Osceola, Wisconsin and building a new facility in Monterrey, Mexico for
approximately $150 million.
- Caterpillar; Total jobs reshored: 2,100; States
benefiting: Georgia, Illinois, Indiana, Texas; Industry: Construction
& farm machinery; Headquarters: Peoria, Illinois; According to the
Reshoring Initiative, over the last several years construction
equipment manufacturer Caterpillar has announced reshoring projects
that will target facilities in Georgia, Illinois, Indiana, and Texas,
and will add or retain an estimated 2,100 U.S. manufacturing jobs. In
2012, Caterpillar opened a new facility in Victoria, Texas with an
initial investment of $200 million in an effort to shift production of
its hydraulic excavators from Akashi, Japan to the U.S. In August 2015,
Caterpillar announced plans to expand employment at its Victoria
facility, moving its vocational truck manufacturing operations from
Mexico to the Texas location.
- Whirlpool; Total jobs reshored: 2,165; States
benefiting: Ohio; Industry: Electronics, electrical equipment;
Headquarters: Benton Harbor, Michigan; Since 2010, Whirlpool has
announced several efforts to consolidate its overseas operations within
the U.S. that will add up to an estimated 2,165 reshored jobs for
domestic manufacturing workers. Most recently, in January 2018
Whirlpool announced it would be adding 200 full-time employees to its
facility in Clyde, Ohio. The news came shortly after the Trump
Administration announced safeguard tariffs on large imported
residential washing machines, a move projected to reduce import
competition from Whirlpool rivals Samsung Electronics and LG
Electronics.
- General Electric; Total jobs reshored: 2,656;
States benefiting: Alabama, Arkansas, Illinois, Kentucky, North
Carolina, New York, Ohio
Industry: Industrial machinery; Headquarters: Boston, Massachusetts;
Since 2010, General Electric has announced domestic capital investments
that are projected to add approximately 2,700 jobs to the U.S.
manufacturing workforce. Much of the reshoring efforts are based around
Appliance Park, a newly renovated production facility in Louisville,
Kentucky, and shifting the production of bottom-mounted refrigerators
and front-load washing machines from China and Mexico to the U.S.
According to GE, reasons for the move include lower transportation
costs, a more qualified workforce, and significant tax incentives by
state and local governments.
- Dow Chemical; Total jobs reshored: 2,900; States
benefiting: Louisiana, Michigan, Texas; Industry: Chemicals;
Headquarters: Midland, Michigan; In March 2015, Dow Chemical announced
plans to invest $6 billion in its manufacturing plants in Texas
and Louisiana in an effort to capitalize on lower domestic natural gas
prices. According to a Dow executive, the increase in U.S. fracking
activity has created significant investment prospects for chemical
producers in the United States that will pay off in the next several
years. The Gulf Coast reshoring effort is largely focused on the
production of ethylene, propylene, and chemical derivatives used in
packaging. The company's reshoring efforts announced over the past
several years are projected to retain or add approximately 2,900
manufacturing jobs to the U.S.
- Intel; Total jobs reshored: 4,000; States
benefiting: Arizona, California, Oregon; Industry: Semiconductors &
other electronic components; Headquarters: Santa Clara, California; In
2011, Intel announced plans to hire 4,000 U.S. workers and build a $5
billion microprocessor plant in Chandler, Arizona. Known as Fab 42, the
plant will use the 7-nanometer production process and is projected to
be the most advanced, high-volume microprocessor plant in the world.
While the facility was completed in 2013, its opening was stalled for
several years. In February 2017, however, Intel announced plans to open
the facility with a total investment of $7 billion and the
direct hiring of 3,000 high-tech, high-wage workers. The tech giant
projects the plant will be completed in the next two to three years,
and will indirectly lead to the creation of roughly 10,000 jobs
throughout Arizona.
- Ford; Total jobs reshored: 4,200; States
benefiting: Indiana, Illinois, Ohio, Michigan, New York; Industry:
Motor vehicles & parts; Headquarters: Dearborn, Michigan; In
January 2017, Ford announced plans to cancel the $1.6 billion expansion
of its Mexico production facility, instead opting to expand operations
at its Flat Rock, Michigan facility with a $700 million investment
projected to create 700 jobs. Similar reshoring efforts by the U.S.
auto giant have been announced over the past eight years, targeting
facilities in Indiana, Illinois, Ohio, New York, and other parts of
Michigan and totaling an estimated 4,200 new jobs for the domestic
workforce. Like General Motors and Fiat Chrysler, Ford's announcements
were made amid pressure from the current administration to reduce
investment overseas and increase capital investments in the U.S.
manufacturing sector. While some analysts speculate the reshoring
efforts are a response to the Trump administration's push for domestic
job creation, Ford representatives have noted that they were based on
an initiative to expand its truck and S.U.V. model offerings for U.S.
consumers, which was previously agreed to in a labor contract with the
United Automobile Workers union.
- Boeing; Total jobs reshored: 7,725; States
benefiting: Missouri, Montana, South Carolina; Industry: Aerospace
& defense; Headquarters: Chicago, Illinois; Over the past several
years, Boeing has rapidly expanded its U.S. workforce at various
manufacturing plants throughout the East Coast. Boeing began operations
at a new plant in Charleston, South Carolina in 2011 that manufactures
787 Dreamliner planes. Boeing also recently moved parts of its
production of the new 777X plane from overseas to its St. Louis
facility. The first 777X is projected to be completed by December 2019.
According to the Reshoring Initiative, since 2010 Boeing has announced
plans to reshore approximately 8,000 jobs, the most of any U.S. company other than General Motors and Apple.
- General Motors; Total jobs reshored: 12,988;
States benefiting: Michigan, New York, Tennessee, Texas; Industry:
Motor vehicles & parts; Headquarters: Detroit, Michigan; Over the
past several years, General Motors has made several announcements
regarding various reshoring efforts that will boost employment at its
plants in Michigan, New York, Tennessee, and Texas. The largest
announcement came January 2017, when GM made public its plans to add or
retain 7,000 jobs in the U.S. over the next few years. One of the major
reshoring projects will be the shifting of approximately 600 jobs from
an axle production plant in Mexico to a new facility in Arlington,
Texas. GM's reshoring efforts announced since 2010 amount to roughly
13,000 jobs, the most of any U.S. company other than Apple.
- Apple; Total jobs reshored: 22,200 jobs;
States benefiting: Texas, TBD; Industry: Computers, office equipment;
Headquarters: Cupertino, California; In January 2018, Apple announced
plans to invest over $30 billion in capital expenditures in the
U.S. over the next five years. As part of the investment, Apple is
increasing its commitment to its Advanced Manufacturing Fund -- used to
invest in U.S. manufacturing companies and boost the domestic
manufacturing sector -- from $1 billion to $5 billion. The move is
projected to create over 20,000 new jobs at Apple's existing campuses
and at a new office location which has yet to be announced. Apple's job
creation announcement comes amid criticism aimed at the company for its
outsourcing of manufacturing jobs to China, and accusations that it has
dodged U.S. taxes by keeping some $250 billion overseas. A March 2017
press release from Apple claims the company supports some 4.8 million
jobs in China, compared to 2.0 million in the U.S.
- SoftBank $50B
- Exxon $20B
- Hyundai $3.1B
- Bayer AG $8B
- Toyota $600M
- LG $250M
- Also, certain industries are integral to the
security of the U.S.A (i.e. steel, aluminum, minerals, energy, food,
technology, etc.). Several companies are bringing business and money
back to the U.S.A.
- Many companies have also cited Walmart’s pledge
to buy $250 billion of American-made products between 2013 and 2023 as
a primary reason for shifting operations to the United States. The
pledge has reduced some of the risk of relocating production to the
United States and has helped companies such as Element Electronics,
which won a contract with Walmart shortly after opening a small
flat-screen television plant in Michigan;
There are good reasons to
return to the U.S.A., now that the corporate tax was lowered from 35%
to 21% (nearer to the global average of about 20% for corporate taxes).
A corporate tax rate of 35% was one of the highest corporate taxes in the world, and it was driving corporations and jobs out of the U.S. for decades.