Key Takeaways
- Nearshoring definition: Moving production closer to the consumer market to reduce risks and costs.
- Why it matters: Improves supply chain resiliency, lowers transit times, and reduces shipping expenses.
- Industries adopting nearshoring: Automotive, aerospace, retail, electronics, pharmaceuticals, and more.
- Primary benefits: Efficiency, profitability, and adaptability in a volatile global marketplace.
International shipping is, by its very nature, risky business. So many things can disrupt a global supply chain, from sluggish port operations to geopolitical conflict to capacity shortages. Heck, even the weather can set a supply chain off its course, careening toward disaster!
As importers seek risk-mitigation solutions to steady their supply chains, one increasingly popular strategy is nearshoring, the practice of moving production operations closer to the end consumer market.
This practice, while not new, has surged in adoption over the past five years due to a series of far-reaching disruptions that laid bare the vulnerabilities of the global supply chain.
By choosing to nearshore and relocate manufacturing closer to home, businesses can enhance supply chain resiliency and enjoy reduced transit times, lower shipping costs, and greater operational efficiencies.
Anderson Trucking Service (ATS) has been helping shippers streamline and strengthen their supply chains for decades. The depth of our experience in cross-border shipping allows us to provide unparalleled insights into nearshoring as a growth opportunity for importers.
In this blog, we’ll explore the benefits of nearshoring, why it's gaining traction, and how it can drive efficiency and profitability for shippers.
You’ll walk away with a better understanding of nearshoring as a practice, its strategic advantages, and whether it could be a good fit for business.
Nearshoring Definition: What It Is and Why It’s Trending
Nearshoring is a supply chain strategy in which companies move some or all of its production operations to countries closer to their consumer markets.
For U.S. shippers, this often means relocating from Asia to Mexico, Canada, or Latin America. The goal is simple: reduce reliance on long, overseas shipping routes while strengthening supply chain resiliency.
Nearshoring developed as a reaction to supply chain disruptions across the global transportation industry. While nearshoring as a concept has been around for at least two decades, the practice has exploded in popularity over the past five years.
And it’s easy to see why: From conflicts in the Middle East to deepening trade tensions with manufacturing hotbeds like China, shippers have ample reason to seek production solutions a bit closer to home.
Geographic closeness between manufacturing locations and end markets can lend stability to a company’s supply chain through shortened transit times and decreased risk of interruption from global events.
Those changes can also contribute to better cost management. Overseas shipping can quickly become expensive — and with tariffs on Chinese imports dramatically increasing in 2025 and new fees on Chinese vessels, it will only become more expensive.
By moving manufacturing to a bordering or nearby country, U.S. shippers can avoid these expenses as well as long vessel freight transit times.
What Types of Companies Benefit from Nearshoring?
Not every business will see the same return from nearshoring, but certain profiles stand out. Companies are good candidates for nearshoring if they:
- Manufacture overseas products primarily for U.S. markets
- Ship standardized or repeatable product lines
- Require skilled labor available in Canada, Mexico, or Latin America
- Have U.S.-based steps in its supply chain, such as assembly or kitting
- Seek to reduce ocean freight reliance and improve transit reliability
Industries currently leading the nearshoring supply chain shift include aerospace, automotive, retail apparel, medical equipment, household goods, and electronics.
These sectors traditionally relied on Asia but are now finding competitive, cost-effective alternatives closer to the U.S. Making products in China, Taiwan, Vietnam, or the Philippines is much cheaper than manufacturing in the U.S. — but it inherently requires expensive (and delay-plagued) shipping via air or sea.
Nearshoring presents a tidy solution. Manufacturing just outside U.S. borders offers the same skilled workforce, proximity to the market, and elimination of overseas shipping needs as domestic manufacturing — without the high price tag.
When the three key elements at play — workforce skills, geography, and cost — can be balanced to work in favor of the shipper, that’s an ideal nearshoring opportunity.
Nearshoring Benefits: Efficiency, Profitability, and Resiliency
1. Supply Chain Efficiency
By shortening transit distances, nearshoring can reduce delays and increases supply chain responsiveness.
Time zone alignment makes communication easier, site visits more feasible, and collaboration faster. The result: streamlined operations and quicker delivery to end customers.
2. Improved Profitability
Overseas shippingcan be expensive and unpredictable. Nearshoring allows shippers to cut costly air or ocean freight, while still benefiting from competitively priced labor.
For example, the cost of simply trucking freight from Mexico to Texas is far more const-effective than moving goods across the Pacific and through multiple transit modes,. The shorter the distance (and the fewer the modes of transportation), the lower the cost.
And while nearshoring hubs may not offer the extremely low labor costs of traditional offshoring locations like China, their labor rates and degree of workforce skill are still competitive — especially when compared to domestic markets.
By delivering an overall decrease in costs through better geographic positioning, nearshoring can afford shippers the luxury of a slightly more expensive workforce — a luxury that also supports goals of profitability and greater operational efficiency.
3. Greater Supply Chain Resiliency
Nearshoring can support shippers in building a more resilient supply chain — one that can better withstand and adapt to disruption and remain reliable in the face of unexpected challenges.
A streamlined supply chain is easier to manage and less prone to interruption. By reducing the number of “touches” on shipments, companies lower their risk and improve agility.
When interruptions do occur, nearshoring allows for quicker adjustments to production and logistics. This agility helps companies meet customer demand dependably and ensure consistent service.
Finally, nearshoring often involves relocating operations to countries with import and export regulations that more closely align with the U.S.’s policies, reducing the complexity and risk associated with navigating international trade laws and customs.
This alignment can contribute to smoother overall operations and fewer regulatory hiccups that may delay shipments.
Is Nearshoring Right for Your Supply Chain?
For shippers worried about rising costs in today's volatile global market, nearshoring offers a practical path to reduced costs, faster deliveries, and stronger supply chain reliability.
By moving production closer to end markets, businesses can stay nimble, protect against disruption, and position themselves for long-term growth.
If you’re exploring nearshoring opportunities, ATS can help you navigate the complexities of cross-border logistics. Request a custom logistics quote today to see how we can streamline your supply chain strategy.
