Kickstart: Reshoring hits new record

Manufacturing jobs are continuing to return to the U.S., according to the latest report from the Reshoring Initiative. A record 364,000 reshoring jobs were announced in 2022, up from 238,000 in 2021.

More than 1.6 million have been announced since 2010.

"The underlying trend is driven by the recognition that, in many cases, the total cost of offshoring exceeds that of sourcing domestically," the group says in its annual report, released March 24.

The job total for 2022 includes both reshoring by U.S.-based firms and foreign direct investments by companies outside the U.S. adding regional manufacturing.

That big boost in the number of jobs announced may be hard to duplicate since much of it is linked to federal financial support from initiatives such as the Inflation Reduction Act, Bipartisan Infrastructure Bill and CHIPs Act. However, the trend likely will continue upward, the Reshoring Initiative says.

"We believe that factors further down the list, such as supply chain interruption, proximity to customers and reduced lead time, carry heavier weight in companies' bottom line and their decision to reshore," it said.

A Detroit recycling business is helping to convert more than post-consumer plastics. The operators of Recycle Here are helping to turn abandoned industrial property into low-cost and affordable rental housing in the heart of Detroit.

Kirk Pinho of our sister paper Crain's Detroit Business has the story on the Dreamtroit project headed by Matt Naimi and Oren Goldenberg that will create 76 units of affordable housing, with rents as low as $376 per month for one with a shared bathroom.

The project began when the building housing Recycle Here — a drop-off collection site for all types of material, including hard-to-recycle plastics — and the Lincoln Street Art Project needed repairs.

Naimi said the pair were looking at $3 million just in a new roof, so they expanded their view to consider other ways to utilize the property.

The building and apartments retain an urban flair with graffiti left on the walls and bare bones amenities. The site will also house nonprofits, a bar, grocery and restaurant.

"When people say they can't build affordable housing or things along those lines, we are going to prove you can," Naimi said.

Crocs have taken a very successful journey in the past five years as the Colorado-based manufacturer of plastic shoes with a proprietary foam went from a 2017 effort to launch a comeback to a staggering 200 percent sales growth since 2019.

Crocs share price also grew more than 100 percent since 2019.

The New York Times took note of Crocs Inc.'s success, noting that other brands that were popular early in the pandemic — Peloton, Zoom and Etsy — have struggled recently.

In its annual report, released in February, Crocs said sales hit $3.6 billion in 2022, jumping more than 50 percent, although part of that growth came from its acquisition of the Hey Dudes brand in early 2022. The Crocs brand grew more than 15 percent to top $2.6 billion for the year.