Will U.S. manufacturing be able to create jobs, particularly in view of increased automation displacing workers? The Reshoring Initiative has recognized the automation trend and that returning jobs will be, on average, higher skilled and fewer than when the work was lost to offshore. So, how should companies and policy makers plan for increased automation and what will be the impact on jobs?
-- The impact of automation on jobs is exaggerated thus far. For the last two decades automation has replaced fewer jobs than were lost to offshoring.
-- Productivity is actually growing slowly. Productivity growth has been low for the last 10 years, averaging only 1.7 percent, which is 60 percent below the average of the preceding 17 years. Reshoring Initiative attributes much of the slowdown to decreased capital investment as a result of offshoring.