Insourcing American Jobs Focus of New White House Initiative

The Obama administration launched an initiative to bring jobs back to the United States on Wednesday at a forum with state, local, and business leaders.

Officials are using the term “insourcing,” which traditionally meant to bring services back in-house, to describe the phenomenon of recovering internationally outsourced jobs.

“I’m calling on those businesses that haven’t brought jobs back to take this opportunity to get the American people back to work,” Obama said during prepared remarks. “That’s how we’ll rebuild an economy where hard work pays off and responsibility is rewarded—and a nation where those values live on.”

The White House is expected to present new tax incentives for companies that invest domestic investment during coming weeks. In addition, the administration will propose $12 million in the 2013 federal budget to advocate for domestic business investment.

The initiative, the administration stressed, builds on what they see as a preexisting insourcing trend in which companies are choosing to bring jobs back to the United States. Incentive measures are intended to broaden the practice.

Companies represented at the forum included auto manufacturer Ford, which is planning to add 12,000 domestic jobs by 2015, and Intel, which produces 75 percent of its merchandise domestically while earning 80 percent of its revenue abroad. Also represented were Rolls Royce, Master Lock, and control systems manufacturer Siemens.

“I don’t want America to be a nation that’s primarily known for financial speculation and racking up debt buying stuff from other nations,” Obama said. “I want us to be known for making and selling products all over the world stamped with three proud words: 'Made in America.' And we can make that happen.”

Also on Wednesday, the White House released a report [PDF] that highlights insourcing trends over the past few years, and makes the case that bringing jobs back home will lead to long-term economic improvement and recovery.

Administration officials also plan to take several “common-sense steps” to promote insourcing, including publicizing the International Trade Loan program, and increasing support for states that promote investment through Export Assistance Centers.

The insourcing initiative builds on the momentum from consecutive months of job growth in the United States, including gains in the manufacturing sector.

Jon Christian is a reporter with Campus Progress. Follow him on Twitter @Jon_Christian.

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