Nearshoring – Is it worth it?
Nearshoring is gaining more traction as companies seek cost-effective solutions.
For decades US companies have outsourced their manufacturing to China and other Asian countries. Now, many of these companies are realizing that offshore production may not be as profitable as it once had been. In fact, many companies are relocating their offshore manufacturing business to nearshore partners in Mexico and Latin America to overcome the increasing costs of doing business in faraway countries like China.
With rising labor and freight costs among the many reasons for the shift, nearshore partners now offer competitively priced solutions that make the shift worth it. By moving production closer to end markets, companies are benefiting from lower transportation and logistics costs, shorter lead times, and better access to vendors all of which make managing quality control and projects more feasible.
So, is nearshoring really worth it? As the global economy continues to change nearshoring is becoming a viable, cost-effective solution. More and more companies are reevaluating their strategic approach for manufacturing solutions. In fact, companies that are not at least considering alternative manufacturing sources closer to their home market are certainly missing an opportunity.