Reshoring, what is it and why should you do it?

What is reshoring:

Reshoring is the process of returning manufacturing from a foreign country back to where the products are actually sold and used. Near-shoring means taking production back from a far-away country to a location much closer to the end users but not within the same country. Quite often nowadays this actually means back from China or elsewhere in Asia and India.

Next to the manufacturing of the actual parts, also the making of the Mold and Dies is often done offshore and can be part of reshoring. 

Difference with Nearshoring:

Nearshoring looks at moving production to a closer destination, but does not have to be the same country where it is sold, processed and/or used. This could for instance be Europa or the USA.

In both cases the objectives align, the target is to improve supply chains, reduce lead times, reduce risk, but also the total cost of ownership and operation can be cheaper when re or nearshoring your manufacturing.

As a bonus you also improve economic growth in our own regions, keep more control on intellectual property and reduce your footprint.

Top reasons for reshoring are:

  • Lead time reduction
  • Higher product quality and consistency
  • Rising offshore wages (and less financial advantages)
  • Skilled workforce
  • Local tax incentives
  • Image of being made in their own country
  • Lower inventory levels, better returns and cashflow
  • positions.
  • Better responsiveness to market movements
  • Lower intellectual property and regulatory compliance risks
  • Improved innovation and product differentiation
  • Avoiding high and fluctuating transport costs
  • Same time zone for easier communication & avoid language barriers
Find out more about your options for reshoring:

Download Our Product Manufacturing Infografic

Near sourcing:

Near sourcing, on the other hand, is a strategy to make a supply chain of a yet to be manufactured product more lean by allowing the products or parts to be manufactured outside the parent organization while focusing on proximity.

Certain products can be made at the same price or even more competitive in Europe than prices in Asia. For others this is harder to accomplish and manufacturing prices themselves will be higher but there are many benefits which might outweigh cost price alone. These benefits align with the top reasons for reshoring.

Production Heroes assisted in dozens of developments to setup production in Europe or return it from Asia for our clients. If you have such desires please feel free to contact us. Our network of factories for many different materials, manufacturing techniques and assembly enables us to quickly validate which price points can be achieved. Either send us documentation of the design to be made, images of the product or samples to get the conversation started.