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Newsweek
a day ago
- Business
- Newsweek
Map Shows States Gaining Most Jobs Due to Reshoring Efforts
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The United States is experiencing a surge in reshoring, bringing manufacturing jobs back from overseas. This impacts economic growth, job creation, and the country's industrial future, but the effects could be more intensely felt in certain states, according to a new report from Visual Capitalist. An expert told Newsweek in part, "States like South Carolina, Alabama, Mississippi, and Louisiana are benefiting because rising costs overseas—driven by tariffs—are forcing suppliers to rethink their strategies." Why It Matters Millions of manufacturing jobs are set to return to American soil by the end of 2025, according to Visual Capitalist. This is part due to President Donald Trump's push for domestic manufacturing alongside his recently enacted tariffs on foreign countries' imports. As this occurs, global supply chain disruptions, shifting costs, and major corporate investments could reshape the employment landscape. These changes do not benefit every state equally, with significant regional disparities emerging, the report found, however. What To Know Texas has emerged as the top state benefiting from reshoring, adding more than 40,200 manufacturing jobs as of 2025. That's nearly 23 percent of all positions created through these initiatives nationwide. Major factors fueling this growth in Texas include $65 billion in investment from Samsung, $5.5 billion from Tesla, and $4.9 billion in public infrastructure projects. South Carolina ranks second, claiming 24,800 reshored jobs, with Mississippi (12,100), New Mexico (9,800), and Michigan (8,700) rounding out the top five. Together, these four states account for 32 percent of reshored jobs in the country. Further down the list are Alabama (8,600), Washington (7,900), Louisiana (7,800), and Ohio (6,400). Louisiana's growth is linked to investments by companies such as Hyundai Motor Group, Syrah Resources, Shell Catalysts & Technologies, Intralox, Prolec GE, Mid South Extrusion, Ascentek, Inc., and Climeworks, according to the Louisiana Economic Development. "States like South Carolina, Alabama, Mississippi, and Louisiana are benefiting because rising costs overseas—driven by tariffs—are forcing suppliers to rethink their strategies. It's simply becoming more cost-effective to bring jobs back home," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. The distribution of jobs is highly concentrated by industry. Computer and electronics manufacturing leads with roughly 68,700 new positions, which is about one-third of all reshoring gains. Transportation follows with 52,500 jobs, while electrical equipment adds 34,800 (17 percent). Chemicals and primary metals contribute 11,000 and 9,000 jobs, respectively, as reported by Visual Capitalist and GlobeSt. Major corporations driving reshoring include Walmart, which has announced plans for 300,000 new jobs, as well as Apple (20,000 jobs), CMA CGM (10,000), and GE Aerospace (5,000). Other contributors are Stellantis, GE Vernova (1,500 each), and Siemens (over 900). "Given the increased reliance on a virtual marketplace versus brick and mortar, many employers are able to save money on production they were unable to do in the past while also requiring better-trained new hires," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek. The full top 10 list of states most impacted by reshoring efforts is as follows: Texas (40,200 jobs) South Carolina (24,800 jobs) Mississippi (12,100 jobs) New Mexico (9,800 jobs) Michigan (8,700 jobs) Alabama (8,600 jobs) Washington (7,900 jobs) Louisiana (7,800 jobs) Ohio (6,400 jobs) North Carolina (5,200 jobs) U.S. Vice President JD Vance tours Metallus, a metal products manufacturer, on July 28, 2025, in Canton, Ohio. U.S. Vice President JD Vance tours Metallus, a metal products manufacturer, on July 28, 2025, in Canton, Ohio. Maddie McGarvey-Pool/Getty Images What People Are Saying Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "We now live in a global economy, and that is never going to change. But in the US, we let the pendulum swing too far, and we became dependent on the global supply chain for 100% of our needs in certain sectors. Reshoring is a process that brings the balance closer to the most efficient and effective outcome over time, where we do not outsource everything, even if just to hedge against supply-chain disruptions." Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "The long-term implication is clear: many of the jobs being reshored will ultimately be automated. Government incentives and tariff policies are encouraging suppliers to bring work back, but companies are also looking at ways to reduce their biggest expense—the employee." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Obviously, some will point to efforts from the new administration to have more tariffs on items imported from outside the United States, but the reality is most of the movement was in the works well before the White House changed hands. Factors vary per company, but it's a mixture of a need for more highly skilled labor for certain roles and economic incentives from some states, most heavily in the Southeastern United States, to attract employers." What Happens Next Reshoring is projected to add as many as 2.3 million jobs to the U.S. economy by the close of 2025, according to Visual Capitalist. As companies continue to announce new domestic investments, states that successfully attract these projects may see additional employment gains and economic growth. However, the gains could be short-term, experts say. "The (Trump) administration has already acknowledged that a significant portion of these jobs will be integrated with robotics," Thompson said. "While that strengthens the supply chain, we shouldn't expect a massive increase in jobs held by humans over the long run."
American Press
16-07-2025
- Business
- American Press
Louisiana launches High Impact Jobs Program focused on energy, advanced manufacturing
(Special to the American Press) A new state program designed to boost high-paying employment in Louisiana officially launched this month, offering grants to companies in sectors deemed critical to the state's economy — including energy and advanced manufacturing — while excluding industries like gaming, retail, and solar farms. Louisiana Economic Development Secretary Susan Bourgeois told The Center Square that the program has received four applicants so far. The High Impact Jobs Program, administered by Louisiana Economic Development, was created to provide performance-based grants to businesses that create full-time, benefits-eligible jobs paying above-average wages. To qualify, companies must meet wage thresholds based on regional or parish averages and operate in eligible industries. Bourgeois said the program emerged from a confluence of factors her department identified after she took office earlier this year. According to Bourgeois, there were two or three issues that 'seemed disparate' at first — the Industrial Tax Exemption Program changes under Governor Edwards, a 20-year-old Quality Jobs Program that had never been fully reimagined, and the lack of a modern strategic plan at the department. 'Where we've landed with all this is that they're not independent,' Bourgeois said, suggesting that HIP is meant to address all three issues. To participate in the new program, businesses must be located in Louisiana and approved by the LED secretary. Eligible projects must either create jobs in distressed areas with wages at least 110% of the lesser of the parish or regional average wage, create jobs in other areas with wages at least 125% of the parish average wage, or retain highly skilled workers with advanced degrees, if approved in advance by LED. Grants are reimbursable and based on the annualized wages of qualifying new jobs, capped at $2,000 per job, per year. The reimbursement rate depends on the wage level: 8% for jobs in distressed areas that meet the lower wage threshold, 18% for jobs that meet 125% to 150% of the parish average wage, and 22% for jobs that exceed 150% of the parish average wage. A separate grant is available to retain highly skilled workers with advanced degrees, subject to LED approval. Bourgeois emphasized that the new program is fiscally capped at $125 million annually, unlike the Quality Jobs Program, which was open-ended and dictated entirely by statute. 'That was a commitment we made to the Legislature — that our new proposal would be fiscally responsible while still allowing us to compete and win,' Bourgeois said. According to LED rules and program documents, energy and process industries — including liquefied natural gas services, nuclear components, and carbon ecosystem management — are explicitly listed among eligible sectors. Other targeted industries include manufacturing, logistics, aerospace and defense, biotechnology and medical device production, agribusiness, data centers and general management operations, and technology fields such as robotics, cybersecurity, and industrial software. LED may also approve projects aligned with its strategic plan, which is updated periodically. Bourgeois said that updating the department's strategic plan helped shape the direction of the program. 'We identified five North Stars for the department…one of those that's really fundamentally important is wage growth,' Bourgeois said. 'If Louisiana citizens aren't seeing rising wages to support their families, then are we really effective?' Some industries are expressly barred from participating. These include gaming, retail, solar farms, professional sports teams, local utilities such as water and sewer systems, solid waste disposal, legal and accounting services, call centers, and entertainment companies such as film, music, and live performance production. In the Quality Jobs program's final week, major companies including Shell, Exxon, Air Products, Dow, Meta, Hyundai, and Woodland filed applications before that program's sunset. Each of those companies 'has used the incentive in the past and built project plans around that economic formula,' Bourgeois said.
Associated Press
23-06-2025
- Business
- Associated Press
Tax credit tweaks aim to boost Louisiana's struggling film industry
A law enacting new rules for Louisiana's film tax credit program aims to revive the state's stagnant film industry. Act. 44, signed by Gov. Jeff Landry earlier this month, expands the power of the state's economic development agency to make changes to the incentive program — a program whose proponents say is crucial in bringing productions to the state. 'This bill will allow us to further develop our incentive toolkit so that we can increase our competitiveness with other states,' said Chris Stelly, director of legislative affairs for Louisiana Economic Development. Economic factors have hurt the film industry nationwide in recent years, and Louisiana's industry has experienced a significant decrease in activity. According to Louisiana Entertainment, only one production was active in the state as of May 20. Officials with LED, the agency which oversees the film tax credit program, hope the new law will give them flexibility with the program to attract more business to the state. Verite News spoke with Louisiana's film industry leaders and insiders to understand the implications of the law and what it could mean for the future of the film industry in 'Hollywood South.' What is the film tax credit program? What's changed? Louisiana's motion picture production program uses tax credits to incentivize productions to film in the state. The credits reduce what production companies pay in taxes. Louisiana is one of 37 states that offer a film incentive, according to the National Conference of State Legislatures. Louisiana was the first state to adopt a film tax credit in 1992. The first iteration of the modern program was adopted in 2002 when LED began administering it. Under the new law, qualified productions can receive a tax credit of up to 40% of total production expenditures. The program provides a base credit, previously capped at 25%, with additional smaller incentives for filming outside of New Orleans, employing Louisiana residents, performing visual effects services in-state. An incentive is also available for screenplays created by Louisiana residents. The program also gives production companies tax credits for employees on payroll. A company can use the credit as payment for income tax liability or transfer the credit back to the state and receive a refund check. The new law doesn't change the total dollar value of credits the state can issue annually. Louisiana can issue up to $125 million in credits per fiscal year. Prior to the new law, changing the program required changing state law. Now, LED has more power to adjust the program on its own terms using an administrative rulemaking process. 'LED is looking for more opportunities to make deals and they don't want to have to have the whims of the fiscal session every two years to go in and do that,' said Jason Waggenspack, president of the industry group Film Louisiana. Waggenspack said Film Louisiana worked with LED on the legislation. Although the law doesn't significantly change the current incentive program, it does remove the credit caps per project and payroll caps per person. 'We took both of those away to allow for the inclusion for bigger projects, which we had a wealth of large projects for several years here in Louisiana (and) we wanted to obviously see that opportunity coming back,' Waggenspack said. Why did industry leaders want to improve the program? With more power to amend the program rules, LED plans to adjust the program to be more responsive to evolving industry trends compared to when changes were enacted by the legislature. LED is also looking to negotiate deals with production companies that the development agency believes bring long-term investments to the state. Such a deal could include raising a production's base credit or adjusting the per person payroll credits. Waggenspack pointed to rapper 50 Cent's G-Unit Films and Television production company, which is building a studio in Shreveport. Waggenspack said 50 Cent is looking to negotiate a deal. '(If) you want to come and bring long-term projects here … let's talk to the state and find out a way that it makes it more financially available for you,' Waggenspack said. Now, proposed changes to the program will go through the rulemaking process, which includes a public hearing and approval from legislative committees, among other steps. The law also allows for an emergency rulemaking process. Waggenspack said Film Louisiana is currently working with LED on deciding which parts of the program may need to be amended using this process, and a decision will be made in the coming weeks. Why is Louisiana's film market struggling? What's at stake? Josh Penn, founder and CEO of the New Orleans production company Department of Motion Pictures, said the film market is in upheaval right now. It's not a problem unique to Louisiana, but the state has 'been hit especially hard,' he said. While production costs are rising, Penn said the revenue model is collapsing, largely due to the decline of theatrical and cable TV as reliable revenue and the takeover of streaming. More and more, productions are shooting overseas to minimize costs, which has contributed to a decline in film jobs in Louisiana over the past few years. 'The new law has the potential to bring significant business and jobs back to the state — if it can truly deliver the most competitive tax credit and bottom-line value for films and studios,' Penn said in an emailed statement. But he's worried about the implications of giving LED broad discretionary power on a project-by-project basis. Although it gives the agency flexibility to pursue high-value projects, the 'intentional vagueness' of the law could create instability and confusion, he said. 'If filmmakers can't clearly understand what they can 100% count on from Louisiana's incentives, they may choose to shoot elsewhere,' he said. He's also worried about the implications of allowing a state agency to decide which projects are worth incentivizing and which ones aren't. 'The most troubling interpretation is that it could be used as a political tool of the governor's office or other political officials, with projects rewarded or punished based on their subject matter or the individuals involved,' Penn said. Sen. Adam Bass, R-Bossier City, the sponsor of the legislation, did not respond to a request for comment. Connor Sullivan is a freelance contractor who manages film crews working on episodic series. He said he has only worked a handful of days in 2025 and hasn't had full-time work since 2024. Many of his peers in the industry struggled to find work even earlier than that, he said. 'I and everyone else that I know have been spending savings and really going into some pretty deep debt to try to keep afloat as we navigate what the future looks like,' Sullivan said. Sullivan said he's cautiously optimistic about the law and hopes that it will clear up the 'mixed messaging' he said the state legislature has been sending about the sustainability of the program in Louisiana over the years. International Alliance of Theatrical Stage Employees Local 478, which represents film and television crew workers in the region, supports the new law. '(Act 44) strengthens our ability to attract consistent production, grow local businesses, and create stable, long-term jobs in one of the state's most impactful creative industries,' union representative Simonette Berry said in a statement. Waggenspack said that the film industry has been a significant driver of tourism in Louisiana. He referenced 'Twilight: Breaking Dawn' and 'True Detective' as productions that fostered interest among fans in visiting the state. 'When True Detective was filmed here and became a juggernaut of a (series), we had people calling the New Orleans film office asking, 'Where can I see the tour for the True Detective movie?' And it's like, well, we don't have a tour for that, but we would love the opportunity to take advantage of those things,' he said. How has the program changed over the years? 'In research for this bill, one of the things that really stuck out to me — this incentive and statute has changed 30 times in the last 33 years. So it continues to change, it continues to morph. And it is not incredibly agile,' said the bill's sponsor, Sen. Adam Bass, R-Bossier City, during a May committee hearing. The program has expanded and contracted over the years, including in 2015 when the program — which at the time had averaged $271 million in credits since 2011 — was capped at $180 million. The same 2015 law also suspended the program's buyback provision for one year, meaning some productions couldn't receive refunds on the credits they had earned. Critics, including some fiscal conservative groups, have scrutinized the program and its purported benefits in past years. A 2017 report by an economist for LED found that Louisiana taxpayers got a return of 22 cents on the dollar for the program, which was thriving at the time. When the state issues tax credits, it expects to recoup lost revenue in part through an increase in economic activity that a production brings to an area, such as hotel accommodations and restaurants. Individual taxpayers can also make up the difference. Louisiana's film tax credit program was at risk of elimination during November's special session as part of a broader tax reform effort led by the governor. The bill to end the program passed the House, but a Senate committee later saved the tax credits. The compromise to keep the program involved lowering the cap from $150 million to $125 million per year. A move to eliminate the program would have been detrimental to the film industry in Louisiana, industry insiders say. ___ This story was originally published by Verite News and distributed through a partnership with The Associated Press.
American Press
14-05-2025
- Business
- American Press
Jim Beam column:Tax breaks hard to eliminate
Louisiana legislators are addicted to handing out tax exemptions and they are trying to do it again.(metrocreativegraphics). Louisiana legislators love to give tax exemptions. The state gave away $7.5 billion of those exemptions in 2023, according to the latest figures available. The Advocate sized the situation up well when it said the state gave away $1 in exemptions for every $2 it collected in fiscal year 2023. While giving away $7.5 billion, the state collected $12.5 billion in taxes. The Legislature had some success in curbing those exemptions when it held a tax reform special last November, but that has been rare in recent years. The newspaper said it repealed the Quality Jobs Program and Enterprise Zone exemptions. Legislators reduced the cap on tax credits it gives for movie and TV productions from $180 million to $125 million per year and for investments in historic properties from $125 million to $85 million. In 2023, the state raised $4.5 billion in sales taxes, but it gave away $3.3 billion in exemptions. It sounds almost unbelievable, but the state had 218 state sales tax exemptions totaling $1.7 billion. The state had 95 individual income tax exemptions totaling $1.6 billion. It had 60 corporate income tax exemptions totaling $1.8 billion. Susan Bourgeois, secretary of Louisiana Economic Development, in an interview told The Advocate that investors care most about lower tax rates. A tax incentive, she added, 'closes deals, it doesn't get us deals.' While that is true, legislators still love to sponsor tax exemptions. During the current fiscal session, legislators have proposed over 70 new tax breaks. The newspaper said they insist new tax breaks or expansion of existing ones creates jobs and investment. State Rep. Les Farnum, R-Sulphur, doesn't buy that argument. 'Tax credits are the reason we're in the shape we're in financially,' Farnum said. He is a member of the House Ways and Means Committee that handles exemptions and Farnum in an interview said, 'We give away so much money. We have a host of brand new requests every year.' Thanks to the late-Rep. Vic Stelly, an independent from Moss Bluff, there are some tax breaks that benefit all citizens. A sales tax exemption for food purchased for home consumption totaled $584.5 million in 2023. An exemption for residential utilities totaled $251.3 million. And an exemption for prescription medications totaled $405.8 million. The $1.24 billion exempted for those three when they were approved in 2002 were paid for with higher state income taxes. Unfortunately, the Legislature reduced the income taxes in 2008 and the state experienced almost eight years of severe budget crunches. The late-Gov. Mike Foster called the Stelly Plan one of the most beneficial tax reform plans passed in many years. The three special exemptions are in the state constitution and the state's voters are unlikely to ever remove them from that special protection. The income tax that was raised in 2002 wasn't protected. The Advocate said the Tax Exemption Budget from the Louisiana Department of Revenue shows that legislators over the years have legalized a total of 564 tax breaks in the form of exemptions, deductions and exclusions from sales, income, corporate franchise and user fee taxes. The newspaper said Gov. Jeff Landry and legislators at last year's third special session had some luck ending or reducing tax exemptions. They want to continue to wipe out exemptions, but it's never easy. Former state Sen. JP Morrell, who is now president of the New Orleans City Council, in an interview during last year's tax reform session, said, 'We were unable (in 2017) to get traction. Every (tax break) constituency showed up, and they got to one or two legislators' to protect their favored tax breaks. Former state Rep. Julie Stokes, R-Kenner, tried to end some sales tax exemptions as chair of a special committee to do it, but legislators refused to support the effort. Judging from tax exemptions that were ended or reduced during last November's special session, legislators may finally be ready to end some of the costly tax breaks. However, we won't get a final answer until we see what happens to the 70 tax break bills that were filed for the current legislative session. Louisiana has the highest combined state and local sales tax in the country, so it's definitely time to end a large chunk of those existing 218 sales tax exemptions and lower sales taxes. Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or Reply Forward Add reaction
Yahoo
13-05-2025
- Business
- Yahoo
Energy-focused innovation hub coming to New Orleans' Bywater neighborhood
NEW ORLEANS (WGNO) — A new innovation hub is coming to New Orleans' Bywater neighborhood. According to Louisiana Economic Development, venture platform Newlab's new hub will be built at the Naval Support Activity site on Poland Avenue. New Orleans 'Crawfish King' Al Scramuzza dies at age 97 LED officials said the facility will offer resources for other companies, especially those in the energy production space, with a focus on industrial power, carbon management and utilization and shipping and maritime. Newlab's expansion into New Orleans reportedly comes as part of a partnership with LED, the City of New Orleans, Future Use of Energy in Louisiana, Louisiana State University, Greater New Orleans Inc. and Shell. The story of the mysterious floating diamond clock at M.S. Rau Antiques in New Orleans Newlab New Orleans is set to include 'industrial scale-up spaces, outfitted with specialized equipment and capabilities, allowing startups to fabricate, assemble, and pre-commission demonstration-scale process units for in-field deployments.' According to LED, Newlab will work with government agencies and academic partners to build a network of demonstration sites and regulatory sandboxes in the powerboat race to be held in Jefferson Parish this summer New Orleans East shooting leaves man dead Mexico says migrant deaths have doubled since Trump took office Episcopal Church halts refugee partnership with feds over white South Africans Energy-focused innovation hub coming to New Orleans' Bywater neighborhood Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
