America is witnessing its first boom of manufacturing jobs since the 1970s with over 1.43 million factory workers recently hired, resulting in an increase of 67,000 workers from before the pandemic and creating jobs at a much faster rate than has been the norm over past decades.
What are the causes of this boom?
The American manufacturing boom is an outcome of the COVID-19 pandemic which caused massive disruptions in global supply chains, delayed deliveries, and extremely high shipping prices. These problems caused companies to reconsider the benefits of domestic manufacturing—especially with the growing tension between China and the US possibly worsening the trade war.
Biden’s American Rescue Plan and Inflation Reduction Act have also encouraged domestic manufacturing: direct spending on infrastructure, tax credits, subsidies for battery making and semiconductor industries, and federal benefits given to manufacturers based in the US. The American Rescue Plan in particular provided support to small businesses and local economies, both central aspects to the restoration of manufacturing jobs.
Still, 78% of companies have yet to shift their production back to the states, leaving much opportunity for growth. The White House continues to make efforts to push manufacturing back to the US, continuing the current trend in increased manufacturing jobs and encouraging long term investment.