Nearshoring is where a business moves its operations to a nearby country from one of greater distance.
Nearshoring is a term that came out of the practice of offshoring, which is when companies move their product manufactured to a lower landed cost region than that of their native country.
The practice of nearshoring has become a hot topic in today's politically charged world trade environment where countries are increasing tariffs on other countries, thus increasing the total landed cost, to encourage manufacturing out of that country back into the home country or another country for its national benefit.
Top 10 Benefits of Nearshoring
Allows for more frequent visits to the manufacturing site.
Improved control of intellectual property.
Closer proximity can equate to a reduction of cultural discrepancies and language barriers.
Quite often nearshoring places the facility into similar time zones, which improves communication.
Quicker transit from manufacturing site to the ultimate customer.
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