Nearshoring vs. Reshoring: Solutions & Challenges in Manufacturing

Welcome back to the Making the Decision to Reshore or Nearshore series.

.In Part 1 of the series Supply Chain and Manufacturing experts Chip Barth, David Pate and guest host, Harry Moser of the Reshoring Initiative, talk about the evaluation criteria to determine if reshoring, nearshoring or doing nothing is best for your company.

In this Part 2 of the series, “Decision Made: Solutions and Challenges of Nearshoring vs. Reshoring,” David and Chip return to help manufacturing leaders who have made the decision to relocate, compare the opportunities and challenges of each approach to determine which option is best for their operations.

Complete the form to download the 20-minute webcast recording.

Other episodes in this series:

Part 1: Making the Decision to Reshore, Nearshore or Do Nothing

Part 3: Optimizing Operations Processes to Capitalize on Reshoring Benefits

Frequently Asked Questions

What is driving manufacturers to consider reshoring or nearshoring production?

Manufacturers are reconsidering where they produce goods due to ongoing supply chain disruptions, rising transportation costs, tariffs, geopolitical risk, and long lead times associated with global sourcing. The webcast explains that recent volatility exposed the fragility of extended supply chains, prompting leaders to look more closely at production location as a lever for improving resilience, responsiveness, and total landed cost—not just unit price.

What are the key tradeoffs between reshoring and nearshoring?

The webcast highlights that reshoring and nearshoring both involve tradeoffs between cost, speed, risk, and operational capability. While bringing production closer can reduce lead times and supply risk, it often introduces higher labor costs and capacity constraints. Success depends on understanding product complexity, volume, workforce availability, and the organization’s ability to execute efficiently, rather than assuming location alone will solve supply chain challenges.

What operational capabilities are required to make reshoring or nearshoring successful?

Strong operational fundamentals are essential for success. The webcast emphasizes the need for stable processes, disciplined management systems, skilled labor, and productivity‑focused execution to offset higher regional costs. Without operational excellence, reshoring or nearshoring can increase risk and cost instead of improving performance. Manufacturers that pair location changes with process improvement and leadership discipline are far more likely to achieve the intended benefits.

Meet the Expert

David Pate

Vice PresidentEmail David

Dave Pate is an experienced business leader with previous roles in plant management, planning and lean operations. He currently serves as Vice President, introducing new clients to TBM, cultivating long-term growth with current clients and on-boarding new clients.