Even More Companies Delaying Plans to Offshore Jobs

At least eight companies have indicated that the President Elect's campaign promises have driven their decision to delay or cancel plans to move jobs to other countries.

Merven McIntyre

3 minute read

The list of companies that are known to be putting offshoring plans on hold in response to President Elect Donald Trump’s campaign rhetoric has grown to eight in the last week. Trump’s threats that companies moving jobs out of the U.S. will face “consequences” are having an effect even before he takes office in January.

One week ago, sources at United Production Technologies shared that plans to move 350 manufacturing jobs to Monterrey, Mexico, have been put on hold until Trump’s abilities to act against offshoring companies become clearer.

Late last week, MSN reported that five companies have put plans to move jobs to Mexico on hold. Three of the firms are clients of San Diego-based Tacna and two are clients of the McAllen Economic Development Corp. The names of these five companies have not been made available.

On Sunday another manufacturer, located in Central Indiana, was added to the list when a union leader in touch with The Middle American learned that plans to offshore manufacturing jobs have been paused due to fears of high import tariffs, which Trump mentioned frequently during his campaign. Neither the manufacturer nor the union can currently be identified due to a non-disclosure agreement. “We [at the union] were thrilled to learn that jobs we’ve been fighting to keep for over a year and a half are not leaving afterall. [The management] haven’t made a commitment to stay, but many of our members are hopeful that Trump will make good on his promises and create a domestic environment that is hostile towards companies who move production overseas only to re-import back into the States. We’d already accepted that these jobs were lost and we were working to find re-training for this workers.”

Completing the list is Shelby Pneumatics, a small manufacturer of custom pneumatic components in the Louisville, Kentucky area. Daniel Borda, the spokesperson for Shelby, announced this morning that their plans to send about half of their workforce to Mexico have been cancelled. “The cost savings we expected from the move are no longer justified with the risk of high import tariffs possibly being introduced within the next few years,” said Borda.

Although Trump’s ability to follow through on his promises are still unknown, it is clear they are having a real effect on the manufacturing industry. Very few public announcements have been made concerning changes in plans related to the incoming administration, but off-the-record discussions with representatives of manufacturing companies and unions indicate that there is a major shift towards caution under way.

Focus on manufacturing, mining, and heavy industry were an important part of Trump’s campaign, who pulled off a surprise win in November based largly on support in manufacturing communities across the Upper Midwest. Trump won 10 of the 12 Midwestern States, including typically blue Wisconsin and Michigan.