Reshoring and Its Impact on Transportation Infrastructure & US
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Reshoring and its impact on Transportation Infrastructure & US Economy CFIRE 09-16 CFIRE December 2016 National Center for Freight & Infrastructure Research & Education Department of Civil and Environmental Engineering College of Engineering University of Wisconsin–Madison Authors: MD Sarder, Chad Miller, and Tulio Sulbaran University of Southern Mississippi Mike Golias and Sabya Mishra University of Memphis Mike Anderson University of Alabama–Huntsville Ben Zietlow University of Wisconsin–Madison Principal Investigator: MD Sarder University of Southern Mississippi This page intentionally left blank. Technical Report Documentation 1. Report No. CFIRE 09-13 2. Government Accession No. 3. Recipient’s Catalog No. CFDA 20.701 4. Title and Subtitle 5. Report Date December 2016 Reshoring and its impact on Transportation Infrastructure & US Economy 6. Performing Organization Code 7. Author/s 8. Performing Organization Report No. MD Sarder, Chad Miller, and Tulio Sulbaran, University of Southern Mississippi CFIRE 09-16 Mike Golias and Sabya Mishra, University of Memphis Mike Anderson, University of Alabama–Huntsville Ben Zietlow, University of Wisconsin–Madison 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) University of Southern Mississippi 730 East Beach Boulevard 11. Contract or Grant No. T002688 Long Beach, MS 39560 United States 12. Sponsoring Organization Name and Address 13. Type of Report and Period Covered Department of Transportation Final Report 8/15/2014–12/31/2016 Office of the Assistant Secretary for Research and Technology 1200 New Jersey Avenue, SE 14. Sponsoring Agency Code Washington, DC 20590 United States 15. Supplementary Notes 16. Abstract Reshoring is expected to have a tremendous impact on the United States (US) economy and on the utilization of the existing transportation infrastructures of the country. It is an immense need to identify the potential companies in the US that will bring their manufacturing operations back in the US and to identify the impact on US economy and transportation. The change in location and subsequent alteration in product supply chain due to reshoring will cause changes in infrastructure needs to address issues such as capacity constraints, delays, and congestions. 17. Key Words 18. Distribution Statement No restrictions. This report is available through the Transportation Research Information Services of the National Transportation Library. Economic impacts; Infrastructure; Rehabilitation (Maintenance); Supply chain management; Traffic congestion; Traffic delays; Economics; Highways; Policy; Transportation (General) 19. Security Classification (of this report) 20. Security Classification (of this 21. No. of Pages 22. Price page) Unclassified 192 -0- Unclassified Form DOT F 1700.7 (8-72) Reproduction of form and completed page is authorized. DISCLAIMER This research was funded by the National Center for Freight and Infrastructure Research and Education. The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the information presented herein. This document is disseminated under the sponsorship of the US Department of Transportation, University Transportation Centers Program, in the interest of information exchange. The US Government assumes no liability for the contents or use thereof. The contents do not necessarily reflect the official views of the National Center for Freight and Infrastructure Research and Education, the University of Wisconsin– Madison, or the US DOT’s RITA at the time of publication. The United States Government assumes no liability for its contents or use thereof. This report does not constitute a standard, specification, or regulation. The United States Government does not endorse products or manufacturers. Trade and manufacturers names appear in this report only because they are considered essential to the object of the document. Final Report CFIRE Research Initiative Reshoring and Its Impact on Transportation Infrastructure and US Economy Prepared for: Prepared by: Dr. MD Sarder, Dr. Chad Miller, and Dr. Tulio Sulbaran - University of Southern Mississippi Dr. Mike Golias and Dr. Sabya Mishra - University of Memphis Dr. Mike Anderson - University of Alabama- Huntsville Mr. Ben Zietlow - University of Wisconsin-Madison 1 CFIRE Research Initiative: Reshoring and Its Impact on Transportation Infrastructure and US Economy Copyright 2017, by Dr. MD Sarder, Dr. Chad Miller, Dr. Tulio Sulbaran, Dr. Mike Golias, Dr. Sabya Mishra, Dr. Mike Anderson and Mr. Ben Zietlow. All Rights Reserved. This book, or parts thereof, may be reproduced only with written permission of the authors. Printed in the United States of America. 2 FORWARD This report provides a valuable resource to assist in making informed choices about reshoring and its potential impact on transportation networks and economy in the CFIRE region to foster economic development of the region. This CFIRE Research Initiative “Reshoring and Its Impact on Transportation Infrastructure and US Economy” was conducted by researchers from the University of Southern Mississippi, University of Memphis, University of Alabama – Huntsville, and University of Wisconsin – Madison under the direction of CFIRE executive management team. This document will be of particular interest to individuals and companies who plan and evaluate reshoring decisions and freight flows through the CFIRE region. Other audiences for this document include policymakers, US manufacturing companies, transportation professionals, researchers and students in related fields. 3 ACKNOWLEDGEMENTS The PI and Co-PIs from the University of Southern Mississippi, University of Memphis, University of Alabama – Huntsville, and University of Wisconsin – Madison would like to thank Advisory Board Members for their all the supports and thoughtful comments during the meetings and review of the project reports. The PI and Co-PIs would like to give special thanks to graduate assistants Mr. Zachary Bouis, Mr. Jaehoon Kim, Mr. Salahuddin Ayuby and Ms. Rajitha Nakka for their significant contribution to this project. Additionally, the research team for this project would like to express appreciation to the following individual/institutions for guidance, support, and/or contribution to this collaborative effort: • Harry Moser, President and Founder, Reshoring Initiative • Bruce Lambert, Executive Director Institute for Trade and Transportation Studies • Matthew Wypyski - Deputy Executive Director & COO, MS State Port Authority • Bill Martin, Director, Franklin Furniture Institute, MSU 4 TABLE OF CONTENTS FORWARD ___________________________________________________________________ 3 ACKNOWLEDGEMENTS ________________________________________________________ 4 TABLE OF CONTENTS __________________________________________________________ 5 LIST OF FIGURES ______________________________________________________________ 7 LIST OF TABLES _______________________________________________________________ 8 EXECUTIVE SUMMARY _________________________________________________________ 9 CHAPTER 1: Introduction ______________________________________________________ 11 1.0 Introduction ___________________________________________________________________ 11 1.1 Background __________________________________________________________________________ 11 2.0 Literature Review _______________________________________________________________ 14 2.1 Main Bullet Points from Literature ________________________________________________________ 14 The results of the literature review are summarized by the bullet points below. _______________________ 14 2.2 Survey Based Studies ___________________________________________________________________ 15 2.3 Other Studies: ________________________________________________________________________ 20 3.0 References ____________________________________________________________________ 31 Chapter 2: Assessing Reshorability of US Manufacturing Industries ____________________ 35 1.0 Abstract ______________________________________________________________________ 35 2.0 Introduction ___________________________________________________________________ 35 4.0 Methodology __________________________________________________________________ 36 4.1 Step 1: Selecting Socio-economic Factors ___________________________________________________ 36 4.2 Step 2: Reshoring Factors _______________________________________________________________ 38 4.3 Step 3: Weighting the Factors ____________________________________________________________ 38 4.4 Step 4: Reshorability Index ______________________________________________________________ 38 5.0 Result and Analysis _____________________________________________________________ 38 6.0 Sensitivity Analysis______________________________________________________________ 39 9.0 Reference _____________________________________________________________________ 42 Chapter 3: Manufacturing Location Quotients _____________________________________ 44 1.0 Study Area ____________________________________________________________________ 44 2.0 Data _________________________________________________________________________ 44 3.0 Methodology __________________________________________________________________ 44 4.0 Flagged Counties _______________________________________________________________ 45 5.0 Results _______________________________________________________________________ 47 5 6.0 Analysis by Industry _____________________________________________________________ 50 6.1 NAICS