GOODQUESTION Readers Weigh In
Will More U.S. Companies Turn to Nearshoring to Diversify Supply Chains in the Next Five Years?
Taris Complicate the Picture
ABSOLUTELY
NEARSHORING WILL ACCELERATE as companies respond to climate risks, economic uncertainty, and shifting trade policies. Taris and global disruptions are pushing businesses to reassess supply chains for greater resilience and eciency. In today’s fast-moving environment, nearshoring strikes the right balance between speed, risk mitigation, and cost. –Mita Gupta Executive Vice President and Global Business Unit Head, WNS Procurement EMBRACING DIVERSIFICATION to reduce supply chain risks, lower costs, and improve resilience is a shift that companies cannot—and should not—overlook. –Gerald Hofmann President of Integrated Marine Logistics Division, Odyssey Logistics
Taris can inspire nearshoring when there’s confidence in their permanency. But that’s not what’s happening. It’s hard to justify a 30-year multi- million-dollar factory investment when you don’t know how input costs will look next week, let alone a year or decade from now. –John Lash Group Vice President, Product Strategy, e2open Taris were expected to accelerate the shift toward nearshoring and reshoring by adding an incentive. Instead, the imposition of taris on Canada and Mexico has introduced complexity and uncertainty. Some manufacturers are launching large reshoring eorts; others are taking a wait-and-see strategy. –David Pate Vice President, TBM Consulting Taris will be increased in Mexico which will make nearshoring moot. Even though it is increasing rapidly especially if you look at Monterrey, Mexico, after time it will alter back to Asia. –Mike Grin President, Razr Logistics
WE EXPECT NEARSHORING TO INCREASE as companies work to diversify their supply chains, reduce risks, and improve resilience. Plus, with the underlying labor shortage in the United States, imported goods will grow. Advances in automation and robotics as well as commitments to reduce carbon footprints make it more feasible to shift manufacturing to Mexico from around the globe. –Dave Kiesling Vice President of Transportation Management, Kenco
NEARSHORING WILL LIKELY GROW, especially among SMBs as they actively manage tari-driven risks and uncertainties, which they are often less equipped to absorb compared to larger competitors. Our research shows nearly 75% of SMBs view taris from China as a significant threat to their business, which could fuel a shift toward more stable, resilient supply chains closer to home.
YES
NEARSHORING IS ALREADY UNDERWAY and will likely continue in the near term, given mounting incentives to relocate supply chains to minimize vulnerabilities and boost resiliency. Companies are still responding to COVID aftereects and logistical bottlenecks, and while preferential duty arrangements may make nearshoring attractive, U.S. tari enforcement may shift that outlook. –Colby Potter Lead Analytical Content Manager, Sayari
–Barry Kukkuk CTO, Netstock
6 Inbound Logistics • April 2025
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