GOODQUESTION
Reshoring Over Nearshoring
NOT NECESSARILY
NEARSHORING REMAINS KEY, especially in supporting sustainability goals. However, o shoring and globally connected providers will continue to play a role in mitigating risks and adapting to policy shifts that could impact costs.
Amid escalating taris and uncertainty around the future of trade with Canada and Mexico, I expect a rise in reshoring in the United States rather than nearshoring in neighboring countries. We’ll likely see a gradual resurgence of industries previously abandoned in the United States, such as heavy equipment manufacturing, textiles, and shipbuilding. But it will take massive amounts of capital—and time—to build. –Tom Perrone SVP, Global Professional Services, project44 Short-term uncertainties from taris are making onshoring slightly more appealing. As for nearshoring, Mexico gained some traction recently with USMCA, though tari s have the potential to negate the recent gains. If the tari situation can be amicably resolved, nearshoring has strong potential. –Madhav Durbha Group Vice President, CPG & Manufacturing, RELEX Solutions Reshoring will be the name of the game if the Trump 47 Administration achieves its goals. Bringing manufacturing back home will be essential as USMCA loses cost-e ectiveness. Supplier diversity remains a valuable SCM response to geopolitics although even the threat of long-term tari s on Canada and Mexico challenges the risk benefit of nearshoring strategies. –Jonathan Todd Vice Chair, Transportation & Logistics Practice Group, Benesch Friedlander Coplan & Arono LLP
–Shanmugam Senthilnathan Group Chief Executive Ocer, EFL Global
WHILE NEARSHORING CAN BE PART OF THE SOLUTION, the bigger priority is building a supply chain that’s nimble and diversified. –Kapil Kalokhe Vice President, Corporate Development & Strategy, ePost Global MORE U.S. COMPANIES WILL RECONSIDER where they manufacture their goods over the next five years. However, nearshoring may not necessarily be the answer for every company, as there are other countries that still have huge potential. India is a major example, and I would expect to see more U.S. companies shift their manufacturing from China to India over the next five years. –Bryan Gerber Founder and CEO, Hara Supply
THE NUMBER OF COMPANIES ABLE TO a ord this is relatively small. It will take more than five years to build manufacturing capabilities able to equal today’s supply chain. Asia has dominated the world for nearly 60 years in manufacturing capabilities. We will see many companies fold or be absorbed due to rising costs and inability to nearshore their specialized products. –Samuel Keller Account Manager, TA Services
physical assets, and processes that are spread out globally. The actual degree of nearshoring will fall far short of the buzz. –Guy Courtin Vice President of Industry and Global Alliances, Tecsys
HEDGING MY BETS
NO, NOT HAPPENING SOON
THE FUTURE OF NEARSHORING depends on the political climate. U.S.-based
WHEN THE FIRST TRUMP ADMINISTRATION implemented
manufacturing is expected to grow as seen in the pharma and oil sectors. A key challenge is companies’ reluctance to hold inventory for tax reasons, leading to long lead times and lower- quality goods. This issue must be addressed macroeconomically to boost U.S. manufacturing.
tari s, it didn’t result in a U.S. manufacturing renaissance. It
takes companies time to build new manufacturing facilities. There was a little bit of that but more looked at shifting sourcing strategies—where products were coming from and where they were going to—which may be the most likely outcome again, at least in the short term. –Jackson Wood Director of Industry Strategy, Global Trade Intelligence, Descartes Systems Group
–Kyle Neathery CEO, Samson Extracts
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THE BUZZ WILL CONTINUE but the challenge remains: Nearshoring is not simply picking up and moving a few assets, but requires a delicate balancing act between people,
April 2025 • Inbound Logistics 7
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