Supply chains are undergoing a transformation in terms of production location. The concept of reshoring has triggered a boom in the field.
The global market is experiencing a reconfiguration of supply chains, with territorial issues gaining increasing importance. The concept of reshoring became popular as it proposed relocating production to countries of origin or closer to consumer markets.
This model sets a precedent in the evolution of globalization in the sector, shifting companies’ goals toward prioritizing resilience and supply chain security over pure cost optimization.
Key factors of reshoring
The global scenario, marked by geopolitical tensions, has directly impacted supply chains, leading to a resurgence of business strategies focused on relocating production. In this context, Fernando Boudourian states that analyzing economic trends is crucial for planning strategic decisions.
Beyond this, other factors have driven this transformation in the sector. Logistics delays and rising maritime transport costs have affected the profitability of multiple industries, alongside tax incentives offered by governments to encourage local manufacturing investment.
Technological transformation and automation have also played a key role, with robotics, artificial intelligence, and 3D printing reducing reliance on cheap labor in emerging markets. Additionally, environmental awareness and ESG regulations have further encouraged relocation, as it allows companies to comply with stricter standards.
In this context, reshoring is transforming various industries, from multinationals to local businesses. The manufacturing sector is at the forefront, with technology, automotive, and pharmaceutical companies adjusting their production to reduce dependency on Asia.
In the retail and consumer goods sector, companies are also investing in automated factories in developed markets to shorten delivery times and respond more quickly to changes in demand, optimizing both production and distribution.
However, reshoring also implies high short-term investment costs, including expenses related to building new infrastructure, staff training, and adapting to stricter regulations. Not all companies are implementing this promising model, even though it could become a differentiator in global competition—a downside of the trend.
In this regard, reshoring is not merely a passing trend but rather lays the foundation for a structural reconfiguration of the global economy. It forces companies to prioritize resilience in their supply chains and investors to adapt their strategies to focus on specific sectors and regions.
This transition presents new financial and operational challenges in the market, while also opening a new landscape of opportunities in infrastructure, technology, and advanced manufacturing. For long-term investors, reshoring represents a transformation that could redefine industrial competitiveness and shape the flow of capital.