Reshoring Likely to Increase, Nearshoring a Viable Option.
By Stephen Slade on Jul 09, 2013
In a recent survey by the Institute of Supply Management (ISM), 30% of supply chain leaders say their companies are now embracing re-shoring. This compares to 37% who indicated they were not likely to consider bringing work back. A number of reasons are cited for this shift including protection from cyber attacks, revised tax policies and economic stability in Europe. Tom Derry, CEO of ISM indicated the apparent trend of attendees seeing more advantages of keeping work within their home countries. *
Near-shoring refers to manufacturing work that has returned closer to demand markets eg: for America in near-areas such as Latin America. With the advent of CNC and the diminished labor component in production, many manufacturers now find that near & local sourcing contributes to major savings in transportation, warehousing and inventory in motion. Other cost factors include**
* Source: 575 respondents from 2000 attendees at the Dallas Annual ISM Conference, Logistics Management, June 2013, pg 2
** 'Reshoring, Near-shoring, Best-shoring: Supply Chain Strategy" Spend Matters, May 2, 2013
More info: 'Is the reshoring of manufacturing a trend or a trickle?' Forbes, June 27, 2012