U.S. Commerce Secretary Penny Pritzker wants U.S. companies to evaluate the benefits of returning their manufacturing operations back to the United States.
She made her remarks at the “Reinvesting in America, Creating Jobs at Home” forum on Capitol Hill Tuesday.
Many companies “are finding that the total cost of production and other expenses related to manufacturing abroad can carry costs and risks that outweigh the benefits, and are considering domestic operations,” Pritzker said.
“Businesses across the globe are looking to invest in U.S. manufacturing and services, and through SelectUSA, the Commerce Department is continuing its work to support and educate companies interested in re-shoring,” she added.
At the same event, Rep. Frank Wolf, chairman of the House Appropriations subcommittee that funds the Commerce Department, said, “The cost due to the theft of intellectual property by the Chinese government is almost incalculable. That’s why there has been so much more interest in re-shoring manufacturing over the last several years.”
The forum — organized by SelectUSA, a program housed in the Commerce Department — included more than 200 attendees from the industry and government.
Some U.S. companies to successfully re-shore their manufacturing in recent years include K’NEX Brands, a toy manufacturer; Mantra Services, an IT services provider; and the Richelieu Legwear, makers of Peds brand socks and other legwear.
The Commerce Department’s Economic and Statistics Administration initiated an updated Assess Costs Everywhere (ACE) tool
during the forum. ACE, which links to public and private resources, as well as case studies, will be used by Commerce officials to work one-on-one with companies and local governments across the country.
Earlier this month, A.T. Kearney’s annual Foreign Direct Investment Confidence Index ranked the United States as the top investment destination for the second year in a row, with the highest net positive position in the 16-year history of the index. In addition, the Boston Consulting Group found that the share of U.S. executives actively considering relocating manufacturing from China back to the United States rose to 54 percent in 2013, compared with 37 percent only 18 months earlier.