A recent profile “How does the Tennessee Valley Authority work?” by FDI Intelligence magazine describes how critical partnerships can be when competing for jobs and investment tied to the region.
For example, 9to5 Seating announced last year the location of a new manufacturing facility that will bring more than 500 new jobs to Union City, Tennessee. The company is reshoring the manufacture of its product from China back to the U.S. TVA and local power companies worked in close partnership with Union City/Obion County officials and state and local economic developers to offer services to win the deal. The company’s site selection effort took nearly three years and encompassed 15 different states.
TVA also introduced the company to a local supplier for product used in its manufacturing process. Connections and resources are critical for long-term business growth.
How can Valley-area communities leverage partnerships to attract more “reshored” dollars and jobs?
This week, Valley Works examines what drives a company’s decision to bring business back to the U.S., giving insights on how local economic developers can market to these prospects.
First, let’s take a look at reshoring as a rising global business trend:
The rise of reshoring
“The reshoring movement is growing,” according to Patrick Van den Bossche, a partner with global firm ATKearney (read his report here). “A number of macroeconomic factors have tipped the balance in favor of domestic manufacturing.”
Harry Moser, president of the Reshoring Initiative, estimates reshoring has brought nearly 50,000 manufacturing jobs back to the U.S. in the past three years.
Meanwhile, the Boston Consulting Group predicts reshored business (combined with U.S. exports) will create between 2.5 and 5 million jobs by the end of the decade. (more…)