FOCUS ON: NEARSHORING NEARSHORING: HYPE OR HAPPENING? While businesses of all types are exploring the idea of reorganizing supply chains so manufacturing and production occurs closer to the United States —with the focus largely on Mexico—it’s still unclear exactly how much traction nearshoring has gained. Some experts say nearshoring is definitely here to stay, while others claim the buzzworthy practice won’t truly change the supply chain landscape: HAPPENING “Major supply chain trend in 2025: Reshoring and nearshoring. As geopolitical tensions and compliance regulations mount, companies will continue to shift sourcing and manufacturing away from China to other Asian countries as well as Mexico.” –Donald Hicks , CEO & Founder, Optilogic “Nearshoring will continue in 2025, with increasing trade restrictions focusing on domestic manufacturing and supply chains in the United States and aecting global trade partners. Transparency and supply chain assurance will be critical as new restrictions on domestic content and product origin are considered. Companies will need enhanced visibility through all supply chain tiers and mechanisms to validate component origins.” –Michael Aller , Director, Supplier Development, FloridaMakes, part of the MEP National Network
HYPE “While nearshoring is often touted as the next big thing, its impact is likely overstated. We won’t see a seismic shift in 2025. Transitioning from global dependencies requires massive investment, time, and coordination that many businesses can’t quickly absorb. Even with rising taris and shipping-related costs, global networks still oer unmatched cost advantages and access to specialized suppliers. Companies may adopt a hybrid approach, balancing localized sourcing for some items while retaining global partnerships for scalability and economic eciency.” –Ed Rusch , Chief Marketing Ocer, Magaya “No tari will bring mass production of consumer goods back to the United States in the near future. Brands oering aordable apparel and fast-moving consumer goods remain dependent on low-cost overseas production, while consumers expect cheap, abundant products. The United States currently lacks the manufacturing capacity and labor force needed to support such large-scale domestic production.” –Sébastien Breateu , Founder and CEO, QIMA “It is unclear what will unfold in 2025 between China and the United States. During previous geopolitical tensions between the two nations, some American companies moved their operations and inventory to other sites, such as Vietnam. However, this time, companies may be required to shift operations to the United States. This has the potential to cause some chaos in the electronic manufacturing landscape, as I am unsure how well set up the U.S. is to take on all of this production. Time will tell.” –Kenny McGee , CEO and Founder, Component Sense
FROM MEXICO TO THE U.S. FASTER
OVERHEARD
Growing interest in nearshoring has prompted logistics providers to introduce new services. For one, Schneider’s new cross-border intermodal oering provides continuous rail service connecting Mexico and Texas with Florida and Georgia, as a result of a new partnership between rail providers CSX and Canadian Pacific Kansas City (CPKC).
“There’s a global sense of insecurity that is driving people closer to regional markets and less to global markets. For example, if there is a problem in Taiwan [given the current tensions between Taiwan and China] and you’re a U.S. manufacturer that is tied 100% to imports from China, what would happen to your company? Companies are starting to build in these contingency plans. The most logical location right now for U.S. markets has been Mexico.” —Troy Ryley, President, Echo Mexico, on the Inbound Logistics podcast
This service aims to provide shippers with an alternative to traditional truck transportation, oering secure cross-border transit and reduced delays. Leveraging CPKC’s border-crossing infrastructure, Schneider’s intermodal solution eliminates intermediate stops, which provides quicker customs clearance and minimized exposure to theft—two key concerns for companies that have moved production to Mexico and ship goods cross- border to the United States. In addition, Schneider’s lightweight equipment and heavy-haul permits promise added savings and increased payloads for shippers.
24 Inbound Logistics • January 2025
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