Nearshoring and Reshoring Mitigating Global Supply Chain Risks

Alice Lawrence

No 5atfw_v1, OSF Preprints from Center for Open Science

Abstract: The fragility of global supply chains has become increasingly evident in recent years, driven by factors such as the COVID-19 pandemic, trade wars, and geopolitical instability. In response, companies are reevaluating traditional sourcing models and turning toward nearshoring and reshoring as strategic tools for mitigating risk and enhancing resilience. Nearshoring refers to relocating production closer to consumption markets, often within the same region, while reshoring brings operations back to a company's home country. This study examines the motivations, challenges, and implications of these shifts, drawing on empirical data, industry case studies, and recent supply chain analytics. The analysis highlights how proximity can improve responsiveness, reduce transportation vulnerabilities, and align supply chains with shifting consumer and regulatory expectations. However, it also considers the limitations, including labor shortages, infrastructure readiness, and potential cost increases. Ultimately, the paper contributes to a broader understanding of how firms can balance global efficiency with localized control in an increasingly uncertain economic landscape. Keywords: Nearshoring, Reshoring, Supply Chain Management, Risk Mitigation, Global Disruptions, Strategic Relocation, Manufacturing Resilience, Localization, Trade Policy

Date: 2024-07-27
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://osf.io/download/6810d60d8f595d9b105ef698/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:5atfw_v1

DOI: 10.31219/osf.io/5atfw_v1

Access Statistics for this paper

More papers in OSF Preprints from Center for Open Science
Bibliographic data for series maintained by OSF ().