When it comes to outsourcing operations, nearshoring is becoming a better and better option for many companies. With rising labor costs in China and the problem with maintaining quality standards, as well as the desire to reduce transportation. Costs companies have started to reassess their manufacturing and offshoring strategies.
If you are unsure of what the differences are, we can explain. Offshoring involves shifting work to a foreign or distant country and/or company to production costs. Nearshoring, on the other hand, means sourcing manufacturing closer to The United States; to countries like Canada and Mexico. Many other nations in Central and South America like Argentina, Brazil, or El Salvador; and in the Caribbean like the Dominican Republic and the U.S. Virgin Islands are also used.
With offshoring, not offering the same cost benefits it once did, companies are moving production closer to home. According to an article published by Manufacturing Today, “companies like Apple, General Motors, General Electric, Microsoft, Caterpillar, and Ford have recognized that overseas offshoring is no longer the good deal it was, nor does it comport with today’s supply chain demands.”