Mitchell: The double standard on reshoring in manufacturing vs. tech
Onshoring manufacturing comes with tariffs, credits and content rules for shifting production. But in tech, offshoring runs unchecked.
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Onshoring manufacturing comes with tariffs, credits and content rules for shifting production. But in tech, offshoring runs unchecked.
Each year, U.S. companies offshore more than 300,000 high-skill tech jobs, often outsourcing entire departments without disclosing the number of jobs relocated or the U.S. wages displaced. IT is now the most outsourced business function, offering companies a cheap shortcut with no oversight, reporting or import-like taxes.
We’ve put tariffs and tax credits behind factory jobs, but let high-skill tech jobs quietly slip overseas — undermining the AI ambitions that Washington champions. Domestic tech jobs drive wages, strengthen national security and fuel AI innovation. If the United States is serious about its economic and tech future, it needs to rebuild its domestic workforce.
Now, 37% of IT tasks are performed overseas. At the same time, the 400,000 H-1B visas approved last year — 65% of which are for tech — are competing with entry-level roles that should be filled by American graduates. Instead of easing unemployment, they exacerbate the issue by sidelining a generation of U.S. talent.
Outsourcing may look cost-effective on a balance sheet, but when the code for banks, grids and hospital systems is built or maintained offshore, we import foreign-law exposure, vendors that are difficult to audit and slower response times when things break. That “efficiency” is a national security risk.