What is all the fuss about the shores? Sensible and practical reshoring and nearsourcing strategies

Since the COVID-19 pandemic there has been a resurgence of conversation around reshoring. Rising protectionism has added fuel to the fire. This paper looks at reasons for the rise of this movement and analyses if this has strong legs, or just a knee-jerk reaction due to the global supply chain collapse arising post-pandemic. It also analyses business sentiments around the reshoring movement to bring to the readers reality on the ground. Furthermore, the paper proposes looking at the reshoring phenomenon as a true risk management process across the global supply chain rather than a reactive approach to reshoring. The paper puts forth a data-driven argument on how the post-pandemic supply chain fiasco has given the US and Europe a window of opportunity to balance its supply chain risk of complete manufacturing dependence on China. Post-pandemic, and for purely economic and strategic reasons, businesses in North America and Europe should be aggressively looking to create a viable regional alternative to China’s manufacturing monopoly to hedge risk, and to do that we have proposed a three-pillar strategy. The paper is not proposing that business move all their operations lock, stock and barrel to Latin America, as that is not a viable strategy.