What is reshoring? | Definition from TechTarget
Summary
It is a response to globalization, which led to the outsourcing and offshoring of manufacturing in the past, and represents a shift toward reestablishing and retaining production capabilities locally. Quality control issues, longer lead times, intellectual property concerns and hidden costs gradually shifted interest in reshoring. Innovations such as automation, artificial intelligence and advanced robotics are expected to reduce the significance of labor cost differentials, making reshoring more viable and competitive. This focus on sustainability will drive reshoring initiatives as companies seek to reduce their carbon footprint and adopt environmentally friendly manufacturing processes that adhere to local regulations and standards. The evolving cost dynamics, risk mitigation, technological advances, increased control over quality and agility in responding to market demands are some of the key drivers behind reshoring.