Brief

Nearshoring: Overcoming the Obstacles

Most companies want to bring production closer to home, but rerouting supply chains is complicated.

著者：Peter Hanbury, Jordi Ciuró, Carlos Cruz, and Scott Daubin

First published on 3月 24, 2025
min read


概要 Eighty percent of chief operating officers plan to increase onshoring or nearshoring over the next three years, a Bain survey shows. Only 2% of companies have fully implemented their onshoring or nearshoring strategies. Barriers to nearshoring include cost and complexity, data and supplier visibility gaps, and regulatory hurdles. Global supply chains, once a source of efficiency, have become a wellspring of risk. Rising costs, unpredictable disruptions, and geopolitical shifts have prompted most companies to rethink their sourcing and manufacturing network strategies. Eighty percent of chief operating officers plan to increase their use of onshoring or nearshoring in the next three years, up from 63% in 2022, according to a recent Bain survey of senior executives. Ensuring supply continuity is the No. 1 reason for changing a company’s supply base location, followed by lower labor costs (see Figure 1). More than two-thirds of companies are investing in supply chains closer to home, either through split-shoring, onshoring, or nearshoring (see Figure 2). Figure 1 Supply continuity remains the No. 1 reason for changing the supply base location Note: Improving sustainability was not covered in the 2022 survey Sources: Bain Operations Executive Survey 2024 (n=195); Bain Resiliency Survey 2022 Figure 2 Most companies combine onshoring, nearshoring, and offshoring to balance resilience and costs 出所 Bain Operations Executive Survey 2024 (n=195) Leadership teams are betting on nearshoring to enhance resilience, reduce dependence on distant suppliers, and improve operational agility. Moving production closer to customers also enhances flexibility, shortens lead times, and reduces transportation costs. Our analysis shows companies that get nearshoring right can increase gross margins by up to 30%. But it’s no easy fix. Only 2% of respondents report having fully implemented an onshoring or nearshoring strategy, according to the survey. Nearshoring challenges When moving supply chains closer to home, companies face three significant barriers: cost and complexity, data and visibility gaps, and regulatory hurdles. A shift to nearshoring or onshoring entails significant upfront and ongoing costs. Operations teams must evaluate their existing infrastructure, assess potential new sites, and navigate operational disruptions. Many firms struggle to balance the increased labor costs in nearshore locations with the savings from lower transportation outlays. Split-shoring strategies, which balance cost and resilience benefits, are often the optimal solution but are challenging to get right. Leading manufacturers think about finding the right solution for the business—or right-shoring—as opposed to 100% nearshoring or offshoring. They consider the diverse needs of the end consumer and customers across regions, in addition to weighing the return on the required investments over the useful life of assets. Manufacturers also must evaluate their ecosystem of suppliers with similar rigor. Otherwise, a move closer to customer demand could just mean long and expensive inbound shipments from suppliers end up replacing long and expensive outbound shipments to customers. Our research shows the most common strategy today is split-shoring, or combining nearshoring and offshoring strategies to balance resilience and cost challenges. The lack of end-to-end visibility in supply chains is another challenge in bringing production closer to key markets. While many companies have improved traceability for Tier-1 suppliers, most face significant gaps in tracking Tier-3 suppliers and beyond. Without comprehensive visibility, companies face increased risk of disruptions, inefficiencies, and compliance failures. Scaling traceability solutions from pilot projects to fully integrated systems remains an ongoing struggle for most organizations. Differences in the regulatory landscape from country to country add further complexity to nearshoring efforts. Variations in labor laws, tax policies, and trade agreements require companies to undertake rigorous due diligence before making changes to avoid unforeseen costs. Even the best companies can struggle in new environments. For example, Taiwan Semiconductor Manufacturing Company (TSMC) has successfully built many semiconductor fabs in Taiwan but has faced higher costs and longer timelines in Arizona due to differences in permitting and labor standards. Compliance challenges can also delay the transition process and erode the expected benefits of nearshoring. This is particularly true for industries with stringent safety, environmental, or consumer protection standards. Leveraging technology in nearshoring To overcome these obstacles, companies are harnessing advanced technologies. Digital tools, artificial intelligence, and predictive analytics can help accelerate the implementation of nearshoring initiatives and enhance ongoing supply chain resilience. AI-based tools, for example, simulate scenarios to identify cost-effective nearshoring paths. These solutions enable businesses to optimize their supplier networks, monitor performance, and mitigate risks associated with the transition to nearshoring. Automated procurement systems and integrated planning tools improve efficiency while reducing manual effort. Leading companies use a variety of digital tools to manage their ongoing operations, such as IoT-enabled tracking systems to increase transparency across supply chain tiers. Other tools such as Resilinc assess visibility and risk monitoring in the supplier tiers. These technologies minimize disruptions while ensuring compliance with regulatory requirements. Bain’s survey highlights a key shift from traceability pilot projects to full-scale initiatives, a trend that is likely to continue as these technologies mature. Predictive analytics and AI tools can map out compliance requirements for specific regions, identifying potential risks and suggesting corrective measures. Partnerships with local entities and industry coalitions can provide invaluable insights into navigating region-specific regulations. A roadmap for success Leaders adopt a comprehensive approach to rethinking global supply chains to obtain the full benefits of nearshoring. Strategic evaluation. Three preliminary steps can help lay the foundation for a smart nearshoring plan. They include assessing the needs of key customers and the supplier ecosystem, identifying nearshore locations, and weighing cost-benefit trade-offs. A comprehensive strategic evaluation should go beyond financial metrics and include geopolitical stability, workforce availability, and infrastructure readiness. This evaluation must also consider benefits such as customer willingness to pay for local products, improved service levels, and reduced carbon footprint from nearshore production. These factors will help leadership teams develop a right-shoring approach for the business that balances the benefits of nearshoring, onshoring, and offshoring. Digital and technology integration. Companies that invest in digital tools achieve greater supply chain agility and efficiency. AI, digital tools, and IoT strengthen supply chain capabilities, particularly in supplier monitoring and inventory management. Cross-functional collaboration. Successful nearshoring efforts depend on close cooperation across business functions. Manufacturing, supply chain, procurement, and strategy teams need to align on goals and execution. R&D and sales teams are also important to ensure product design matches local capabilities and marketing can emphasize the benefits of nearshore production. Building resilient networks. Strong supplier relationships, workforce investments, and industry collaborations create ecosystems capable of weathering disruptions. Supplier ecosystem management is a critical approach to ensure the industry works together to improve resiliency while balancing the cost of shifting suppliers to new geographies. Nearshoring is becoming a core element of supply chain strategy. Bringing production closer to home as part of a comprehensive right-shoring strategy allows companies to strengthen their supply chains while positioning themselves for long-term success in an increasingly volatile world.

概要

Eighty percent of chief operating officers plan to increase onshoring or nearshoring over the next three years, a Bain survey shows.
Only 2% of companies have fully implemented their onshoring or nearshoring strategies.
Barriers to nearshoring include cost and complexity, data and supplier visibility gaps, and regulatory hurdles.

Global supply chains, once a source of efficiency, have become a wellspring of risk. Rising costs, unpredictable disruptions, and geopolitical shifts have prompted most companies to rethink their sourcing and manufacturing network strategies. Eighty percent of chief operating officers plan to increase their use of onshoring or nearshoring in the next three years, up from 63% in 2022, according to a recent Bain survey of senior executives.

Ensuring supply continuity is the No. 1 reason for changing a company’s supply base location, followed by lower labor costs (see Figure 1). More than two-thirds of companies are investing in supply chains closer to home, either through split-shoring, onshoring, or nearshoring (see Figure 2).

Supply continuity remains the No. 1 reason for changing the supply base location

Most companies combine onshoring, nearshoring, and offshoring to balance resilience and costs

Leadership teams are betting on nearshoring to enhance resilience, reduce dependence on distant suppliers, and improve operational agility. Moving production closer to customers also enhances flexibility, shortens lead times, and reduces transportation costs. Our analysis shows companies that get nearshoring right can increase gross margins by up to 30%. But it’s no easy fix. Only 2% of respondents report having fully implemented an onshoring or nearshoring strategy, according to the survey.

Nearshoring challenges

When moving supply chains closer to home, companies face three significant barriers: cost and complexity, data and visibility gaps, and regulatory hurdles.

A shift to nearshoring or onshoring entails significant upfront and ongoing costs. Operations teams must evaluate their existing infrastructure, assess potential new sites, and navigate operational disruptions. Many firms struggle to balance the increased labor costs in nearshore locations with the savings from lower transportation outlays. Split-shoring strategies, which balance cost and resilience benefits, are often the optimal solution but are challenging to get right.

Leading manufacturers think about finding the right solution for the business—or right-shoring—as opposed to 100% nearshoring or offshoring. They consider the diverse needs of the end consumer and customers across regions, in addition to weighing the return on the required investments over the useful life of assets. Manufacturers also must evaluate their ecosystem of suppliers with similar rigor. Otherwise, a move closer to customer demand could just mean long and expensive inbound shipments from suppliers end up replacing long and expensive outbound shipments to customers. Our research shows the most common strategy today is split-shoring, or combining nearshoring and offshoring strategies to balance resilience and cost challenges.

The lack of end-to-end visibility in supply chains is another challenge in bringing production closer to key markets. While many companies have improved traceability for Tier-1 suppliers, most face significant gaps in tracking Tier-3 suppliers and beyond. Without comprehensive visibility, companies face increased risk of disruptions, inefficiencies, and compliance failures. Scaling traceability solutions from pilot projects to fully integrated systems remains an ongoing struggle for most organizations.

Differences in the regulatory landscape from country to country add further complexity to nearshoring efforts. Variations in labor laws, tax policies, and trade agreements require companies to undertake rigorous due diligence before making changes to avoid unforeseen costs. Even the best companies can struggle in new environments. For example, Taiwan Semiconductor Manufacturing Company (TSMC) has successfully built many semiconductor fabs in Taiwan but has faced higher costs and longer timelines in Arizona due to differences in permitting and labor standards.

Compliance challenges can also delay the transition process and erode the expected benefits of nearshoring. This is particularly true for industries with stringent safety, environmental, or consumer protection standards.

Leveraging technology in nearshoring

To overcome these obstacles, companies are harnessing advanced technologies. Digital tools, artificial intelligence, and predictive analytics can help accelerate the implementation of nearshoring initiatives and enhance ongoing supply chain resilience.

AI-based tools, for example, simulate scenarios to identify cost-effective nearshoring paths. These solutions enable businesses to optimize their supplier networks, monitor performance, and mitigate risks associated with the transition to nearshoring. Automated procurement systems and integrated planning tools improve efficiency while reducing manual effort.

Leading companies use a variety of digital tools to manage their ongoing operations, such as IoT-enabled tracking systems to increase transparency across supply chain tiers. Other tools such as Resilinc assess visibility and risk monitoring in the supplier tiers. These technologies minimize disruptions while ensuring compliance with regulatory requirements. Bain’s survey highlights a key shift from traceability pilot projects to full-scale initiatives, a trend that is likely to continue as these technologies mature.

Predictive analytics and AI tools can map out compliance requirements for specific regions, identifying potential risks and suggesting corrective measures. Partnerships with local entities and industry coalitions can provide invaluable insights into navigating region-specific regulations.

A roadmap for success

Leaders adopt a comprehensive approach to rethinking global supply chains to obtain the full benefits of nearshoring.

Strategic evaluation. Three preliminary steps can help lay the foundation for a smart nearshoring plan. They include assessing the needs of key customers and the supplier ecosystem, identifying nearshore locations, and weighing cost-benefit trade-offs. A comprehensive strategic evaluation should go beyond financial metrics and include geopolitical stability, workforce availability, and infrastructure readiness. This evaluation must also consider benefits such as customer willingness to pay for local products, improved service levels, and reduced carbon footprint from nearshore production. These factors will help leadership teams develop a right-shoring approach for the business that balances the benefits of nearshoring, onshoring, and offshoring.

Digital and technology integration. Companies that invest in digital tools achieve greater supply chain agility and efficiency. AI, digital tools, and IoT strengthen supply chain capabilities, particularly in supplier monitoring and inventory management.

Cross-functional collaboration. Successful nearshoring efforts depend on close cooperation across business functions. Manufacturing, supply chain, procurement, and strategy teams need to align on goals and execution. R&D and sales teams are also important to ensure product design matches local capabilities and marketing can emphasize the benefits of nearshore production.

Building resilient networks. Strong supplier relationships, workforce investments, and industry collaborations create ecosystems capable of weathering disruptions. Supplier ecosystem management is a critical approach to ensure the industry works together to improve resiliency while balancing the cost of shifting suppliers to new geographies.

Nearshoring is becoming a core element of supply chain strategy. Bringing production closer to home as part of a comprehensive right-shoring strategy allows companies to strengthen their supply chains while positioning themselves for long-term success in an increasingly volatile world.