Nearshoring Pros and Cons: A Decision Strategy

The Next Frontier of Global Manufacturing and Why You Should Consider It

Nearshoring is the outsourcing of a company’s manufacturing process to another country in close proximity to their homeland. This strategy has become very popular with many companies for various reasons, and this article will highlight some of those benefits. There are numerous advantages that come from nearshoring, such as lower production costs and increased profits. But there are also disadvantages that should be considered before making any decisions about whether or not it is worth it to outsource your production overseas.

First, nearshoring can lower the production costs for companies. There are many different factors that contribute to this cost reduction including proximity of materials and labor as well as increased efficiency in operations due to a more homogeneous work environment.


Another benefit is an increase in profitability due to reduced operating expenses such as transportation costs and import duties. By manufacturing close by instead of halfway across the globe, shipping becomes unnecessary and cutting out these extra expenditures increases profits tremendously. Nearshoring also has benefits from an employee standpoint because it creates opportunities for those who would not be able to find employment otherwise – especially if they live nearby or speak the same language as their co-workers abroad. It’s important however, not just because it provides job security but also because it increases the quality of life for those who are employed.

How to know if it is good for you?

Nearshoring can be a great way for companies to take their business to the next level and increase profitability. But before you make any decisions about whether or not it would be good for your company, there are some things you should consider first:

-What is your budget? What kind of savings does nearshoring have on import duties? This will help determine if this is an option that’s financially feasible for your company.

-How many employees do you currently employ? How much space does your factory need in order to manufacture goods close by instead of halfway across the globe? If pack density becomes too high, then production may become too expensive because more people must acquire larger spaces with higher rents and utility rates – which could result is positive things.