Kaysville, Utah May 10, 2021 – The Utah Advanced Materials and Manufacturing Initiative (UAMMI), under the Utah Defense Manufacturing Community (UDMC) released a new study: Reshoring Benchmarking Analysis: How Utah and Its Manufacturing Community Compare in Efforts to Attract Reshoring Companies.
The key findings include:
- National priority is to reshore manufacturing to the United States, but there is no national policy or funding
- Only two U.S. communities (Connecticut and Kansas) have programs in place
- Therefore, Utah is not behind
- UDMC Reshoring Working Group is developing a plan for Utah to create a centralized state-wide program for reshoring manufacturing
The Reshoring Benchmarking study identified and assessed reshoring efforts of other manufacturing communities, states, and local governments. Utah’s programs were compared to these other communities and opportunities or gaps were identified that the Utah could address to enhance reshoring. This foundational research will help to guide Utah’s policy makers in developing a response to reshoring manufacturing to Utah.
At the federal level, there is not national reshoring policy, but support to reshoring companies is provided by the Department of Commerce, which is limited to business consulting and analytical support tools. The U.S. International Development Finance Corporation, under the Defense Protection Act, has programs for low interested loans to support companies reshoring production to the United States.
At the local level, the study found few local entities – manufacturing communities states and other local organizations – have developed specific reshoring initiatives. Most states and local jurisdictions address reshoring in the same manner as any inquiry for new site location or expansion. Thus, the available incentives (support for job training, new employment credits, site selection, etc.) offered are not specifically targeted to reshoring companies.
The study recommends that Utah:
- Identify the lead organization for reshoring efforts for all manufacturing, not just defense related programs, which could a new organization or cooperative;
- Conduct a detailed assessment of existing Utah’s economic development programs and identify their strengths and weaknesses with regard to reshoring.
- Establish a dedicated reshoring marketing program through a statewide corporate recruitment initiative.
This study is part of four studies that will be combined provide the foundational research to develop a comprehensive plan for Utah to proactively pursue companies to reshore manufacturing through the expansion manufacturing capabilities in Utah and by recruiting companies to relocated manufacturing from outside the United States back to Utah. Through the final report expected by June 2021, Utah’s policy makers will have the tools to address reshoring of companies to Utah.