User:Badbluebus/sandbox

Nearshoring is the practice of transfering the place of production of a product to a country that is nearer to the final custumer.

In the United States, nearshoring companies have moved their production back to North American and away from Asia after the COVID-19 pandemic.

Benefits
Motivations for nearshoring include avoiding hidden supply chain management costs, decreasing time to market and increasing production control. In Europe, companies can also benefit from diminished trade barriers due to the fact that Central and Eastern European countries belong to the European Common Market.

Some companies, such as Ford and Caterpillar Inc., have moved their manufacturing units back to the United States and Mexico for reasons related to rising labor costs, currency strengthening in overseas countries and local government incentives. In Latin-America, nearshoring has contributed to a higher demand for qualified labor.