Meet&CoSARASOTA, Fla. — A recent report indicates that while reshoring and foreign direct investment (FDI) significantly bolstered U.S. manufacturing job creation in 2024, the furniture sector is expected to experience a severe downturn next year.
According to the Reshoring Initiative’s 2024 Annual Report, announced reshoring and FDI activities generated approximately 244,000 new U.S. manufacturing positions in 2024. However, job announcements specific to furniture manufacturing are projected to plummet by 70% year-over-year in 2025 – declining from 1,970 positions in 2024 to an estimated 600. This represents one of the steepest anticipated declines among all sectors analyzed.
The overall outlook for reshoring and FDI job creation in 2025 is also more subdued. Projections suggest around 174,000 new jobs will be announced, marking a 29% decrease from 2024 levels. Analysts attribute the broader slowdown to policy uncertainty, the expiration of government subsidies, and ongoing cost disadvantages compared to offshore manufacturing.
The report notes that cumulative job announcements from reshoring and FDI have exceeded 2 million since 2010. High-technology industries continue to be the primary driver of this growth, accounting for 88% of the 2024 jobs and an estimated 90% of early 2025 announcements. Key sectors include electronics, electric vehicle batteries, and transportation equipment.
This contrast underscores the persistent difficulty in attracting lower-technology, labor-intensive industries like furniture manufacturing back to the United States. Factors such as rising production costs, limited automation potential, and shortages of skilled labor hinder domestic competitiveness for many firms in this sector.
“Rebuilding America’s industrial base necessitates successful reshoring, foreign investment, and robust industrial policies,” stated Harry Moser, President of the Reshoring Initiative. “Although significant progress is evident, addressing workforce shortages and manufacturing cost gaps is essential for the U.S. to sustain momentum.”
The report also highlighted that reshoring by U.S.-based companies exceeded foreign direct investment by the largest recorded margin. Furthermore, tariffs are increasingly cited as a factor in relocation decisions, mentioned 454% more frequently in early 2025 cases than in the previous year.
