What is Reshoring?
Reshoring, or onshoring, is the practice of bringing manufacturing operations and other services from overseas back to the US.
Reshoring not only creates jobs and helps strengthen the economy, it also is an extremely cost effective move for companies. It results in better lead time, higher production quality, improved responsiveness to customer demands, and reduces inventory level that lead to better turns.
Other benefits to reshoring include:
- Creating a skilled workforce
- Helps balance trade and budget deficit
- Reduces unemployment
- Reduces income inequality
- Improved innovation
- The image of being “Made in the US“
- and more!
What is Near-shoring?
Nearshoring also brings back jobs that were previously overseas. However, it does not bring back jobs to the US. Instead, with nearshoring companies will take the jobs to geographically closer places such as Mexico.
There are several benefits to nearshoring. One being the cost of overhead and labor, while not as low as overseas, is still much lower than it would be in the US. Other benefits include:
- Greatly reduced shipping times and costs
- Reduced travel costs, giving business owners more oversight into complex processes
- Risk of having intellectual property stolen is greatly reduced
- Fewer time zone differences
- Cultural and language barriers are fewer when sharing the work load with a neighboring country
- and more!
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