Nearshoring and Reshoring: Why More Businesses Are Moving Supply Chains Closer to Home

Global trade in 2025 is a moving target. With tariffs shifting overnight, de minimis disappearing, and geopolitical tensions rising, the global supply chain is volatile. For leaders, the real question isn’t whether to adjust strategy, but how quickly they can move. The thing is, navigating these turbulent waters and constant changes is much easier said than done.

While the end goal of ramping up U.S. production is positive, the pain points of making decisions and adjusting logistics operations are not. That said, the needle is slowly moving toward more businesses bringing their supply chains closer to home—both nearshoring and reshoring in the hopes of driving efficiency and cost savings within a rapidly changing industry.

The shift toward closer supply chains

Since the trade and tariff announcements from both the Biden and Trump administrations in 2024, companies have begun to look in earnest at the best course of action regarding their supply chain operations.

That said, it’s not a new conversation. The pandemic and lingering effects of COVID-19, rising global wages, and higher sustainability expectations opened the reshoring and nearshoring conversation several years ago.

• Nearshoring: moving operations to nearby countries
• Reshoring: bringing production back to domestic markets

Fueled by new fire, the conversation is gaining traction yet again. Both manufacturers and retailers are looking for ways to reduce their risk, improve resilience, shorten lead times, and, of course, mitigate the impact of tariffs. Shifting manufacturing and retail supply chains closer to home can help make that happen.

The drivers behind nearshoring and reshoring

Before a business makes a supply chain shift, it’s essential to look at the full range of factors that influence the decision to nearshore and reshore. According to an article by Deloitte, they can be categorized into three types: quantitative, qualitative, and risk-related.

Global disruptions

For many, global disruptions are the most visible catalyst. Between the pandemic, global conflicts, and evolving trade policies, the global supply chain feels fragile and fraught with landmines. Add in rising shipping costs, labor shortages, weather and natural disasters, and port issues, and it’s not surprising that many businesses are rethinking their reliance on global sourcing and operations.

Customer expectations

Lead time and customer expectations have also had an influence. Today’s shoppers want fast shipping, with 86% of consumers describing “fast” as within two days. The same survey found that 80% of consumers expect retailers to offer same-day delivery; among them, 30% expect free same-day delivery. This puts pressure on retailers to have faster, more reliable fulfillment. Nearshoring and reshoring position production and inventory closer to end markets, strengthening the ability to respond to shifts in demand and cutting weeks off delivery schedules.

Risk and control

Risk management and control also play a role in the decision to nearshore or reshore. The goal is to reduce dependence on suppliers across oceans, which can help improve accountability and quality assurance. Anytime a business can mitigate exposure to risk outside of the company’s control, it reinforces stability and business continuity.

Strategic advantages of nearshoring and reshoring

While the broad advantages of nearshoring and reshoring are straightforward, there are additional, nuanced benefits for manufacturers and retailers.

For manufacturers:

• Greater control over production: Closer collaboration with suppliers and factories.
• Improved quality standards: Easier oversight and faster problem-solving.
• Innovation agility: Faster prototyping, iteration, and scaling.
• Regulatory alignment: Simplified compliance with U.S. and regional standards.

For retailers:

• Lower transportation costs: Less reliance on long ocean or air freight.
• Faster fulfillment: Shortened replenishment cycles keep shelves and online inventories stocked.
• Omnichannel support: More agile response to shifts in demand between ecommerce and retail channels.
• Customer loyalty: Meeting ecommerce customer expectations for fast delivery strengthens brand experience.

The new equation: Cost vs. value

Most businesses aren’t under the illusion that nearshoring and reshoring are a perfect (or swift) solution. However, there is a growing movement that sees it isn’t about “cheaper labor,” but about the total cost of ownership. In other words, choosing resilience over lowest-cost sourcing.

It’s also about balance, and assessing higher production costs with savings in freight, tariffs, and inventory holding. When factored together, these savings often offset the initial cost differences and deliver stronger long-term benefits.

Most businesses reshore and nearshore as part of a broader strategy to diversify while also building the infrastructure for nearshoring and reshoring at scale, which takes years.

The real return on investment comes from resilience, customer satisfaction, and adaptability. By moving supply chains closer to home, even slowly, brands gain the flexibility to respond to demand shifts, reduce the risk of costly disruptions, and build stronger customer trust. The ROI may not be immediate in pure dollar savings, but it pays off in sustainable growth, improved service levels, and greater competitive advantage over time.

Industries leading the charge

Businesses across industries are aiming to reshore manufacturing. Johnson & Johnson, Clasen Quality Chocolate, Timberlab, and Cra-Z-Art have all announced U.S. manufacturing expansion this year, and Williams-Sonoma looked to reduce China-based production by 50% by the end of 2025.

Additionally, brands like Lego, Mattel, and Honeywell began nearshoring in Mexico in 2023, looking to get closer to consumers.  

It makes sense that industries most affected by tariffs and the removal of the de minimis exemption are leading the way in reshoring and nearshoring. This includes:

• Manufacturing: Electronics, automotive, and industrial goods, where complex supply chains and compliance requirements demand tighter control.
• Retail and consumer brands: Apparel, home goods, beauty, and food & beverage, where speed to market and customer experience are critical.

These industries are proving that proximity is a logistical advantage and a strategic imperative.

Looking forward: trends and timelines

Where nearshoring and reshoring will accelerate

Nearshoring momentum will be strongest in Mexico and Central America, where geographic proximity to the U.S. combines with favorable trade agreements and growing manufacturing capacity. Expect industries like consumer goods, apparel, and automotive to accelerate here due to faster transit times and cost advantages over Asia.

Within the U.S., Southeastern states are emerging hubs for reshoring. Investments in logistics infrastructure, port access, and business-friendly policies make the region especially attractive for electronics, food processing, and industrial manufacturing.

The timeline: A multi-year shift

Reshoring is not an overnight transformation. Building new facilities, retraining workforces, and scaling supply networks takes years. Most businesses should view nearshoring and reshoring as a phased transition over 3–5 years, with incremental wins along the way:

• Long-term (4–5 years): Fully integrated North American supply chains with distributed production and fulfillment.
• Short-term (12–18 months): Diversification strategies, smaller pilot programs, initial 3PL partnerships.
• Mid-term (2–3 years): Expanded regional manufacturing, dual-sourcing models, reduced international dependence.

Who may find it more difficult to shift strategy

Not all industries can shift quickly:

• High-tech electronics: Complex global supply chains and reliance on specialized Asian suppliers make reshoring slower.
• Pharmaceuticals: Heavy regulation and dependence on offshore raw material supply limit immediate moves.
• Luxury goods and specialized fashion: Relies on global craftsmanship that can’t easily be replicated domestically.

These industries will likely adopt hybrid models, balancing some reshoring for resilience while maintaining offshore sourcing for specialized needs.

The Role of 3PLs in nearshoring and reshoring success

The decision to nearshore or reshore is only the first step. The real challenge lies in execution. It’s a delicate balance bringing production closer to home without overextending resources or disrupting the supply chain. This is where logistics partners play a pivotal role.

What to look for in a future-ready 3PL

• Infrastructure: warehousing in key markets, multi-node fulfillment networks.
• Scalability: flexibility without heavy capital investments.
• Speed to market: aligning inventory with customer demand for faster delivery.
• Risk reduction: diversifying operations without overextending resources.

3PLs can help bridge the gap between production and customer, providing the infrastructure and expertise needed to make nearshoring and reshoring strategies work. It can mean warehousing in key markets to position products closer to consumers or creating multi-node fulfillment networks to meet regional demand with speed and efficiency.

3PLs also allow manufacturers and retailers to scale and adapt without the burden of heavy capital investment. Instead of building new facilities or staffing up internally, companies can tap into existing logistics networks that are purpose-built for flexibility, resilience, and growth.

For manufacturers and retailers alike, WSI is a strategic partner, aligning warehousing, fulfillment, and transportation with nearshoring and reshoring strategies. WSI helps businesses reduce risk, accelerate delivery, and strengthen customer relationships.

The future is closer than you think

The future of supply chains isn’t about distance…it’s about resilience. Nearshoring and reshoring aren’t short-term cost-cutting plays; they’re long-term strategies for speed, efficiency, and customer trust.

Brands that act now will be positioned to outpace disruption and capture lasting advantage. The question isn’t if supply chains will move closer, but how quickly.

Ready to explore how WSI can help bring your supply chain closer to home? Connect with our team today.