Recently there’s been a near-shoring movement that’s been creating a lot of hype in the supply chain world all thanks to a substantial boost from consumers. Near-shoring is when businesses are transferred from a nearby country to another, allowing both to benefit from the geographic, economic, cultural and political links. New initiatives are being introduced to the US, including the Million Jobs Project an ABC World News series on Made in America and Wal-Mart’s “Buy American” campaign and commitment. The intent is to source an additional $50 billion in products from US manufacturers.
Near-shoring is an important concept because, according to the ABC World News website, 60% of everything US consumers purchase is manufactured overseas. If consumers were to buy just 5% more on made in the USA goods, over one million additional jobs would be created here in the US. In order to alleviate this issue, some large manufacturing chains have already brought a decent portion of manufacturing back to the US due to the rising costs of outsourcing as well as the need to improve service by bringing them closer to consumers.
More and more companies are getting on board with near-shoring in an effort to reduce costs and inventories. Near-shoring is increasingly becoming a viable and effective business option for both emerging and long-existing companies. It not only helps save money by creating more US jobs, it also reduces physical and political risks, proving just how beneficial it’ll be for companies to consider this growing initiative.