January 14, 2012: Bringing back manufacturing jobs was the major topic for discussion in the White House earlier this week. American president Barack Obama called business magnets for a combined discussion on strategies to enhance insourcing, so that the job scarcity in the nation can be minimized. According to him, the main objective in the year 2012 for his administration is to bring back as many jobs as possible.
Well, it is obvious that the president is doing a good job as in the past two years the number of jobs being insourced is pretty high. According to statistics, in the month of December, the country has gained more than 23,000 manufacturing jobs. And this trend is expected to continue. It is also expected that in the coming year, the auto industry alone can bring in 167,000 jobs. Well, to maintain this trend it is essential to take care of some of the major factors which will help insourcing.
More importance should be given in adopting insourcing tax incentives. For the purpose, the country can adopt strategies such as extending a domestic manufacturing tax credit. Improving research and development tax credit can also help to improvise the issues to some extent. It is also suggested to adopt federal tax incentives for those players who are willing to re-shore high-paying jobs.
To make the situation more efficient and competitive it is advisable to take strategies such as investing in infrastructure. This could also help in increasing demand for manufactured materials. The Americans can invest more for their own workers to make sure that the potential skill available in the nation is used for maximum. Paying more attention to the education system and making maximum utilization of the educated workforce will also help. Continuing aggressive trade enforcement and applying Buy America laws are also suggested to be considered by the Obama administration to bring in more insourcing.
Promoting insourcing instead of outsourcing cannot be done in a forth night. It is very essential to make crucial steps and implement strategies which will have a positive outcome. Since, America is trying to promote insourcing as a national policy, offshore markets are looking forward to bring new strategies. There are many offshore outsourcing markets which are depended on the American players. If such players give more importance to insourcing than it is sure that in the coming year service providers in the offshore will find it as a worry.