nearshoring

Syllable breakdown

Dictionary meaning

the strategic relocation of business operations, manufacturing, or service delivery to a nearby country or region, typically sharing a land border or located within the same time zone, rather than offshoring to a geographically distant low-cost location; nearshoring offers advantages over distant offshoring including shorter supply chains, lower transportation costs and transit times, easier oversight and collaboration, reduced risk from geopolitical disruption, and better cultural and regulatory alignment; the trend toward nearshoring has accelerated following pandemic-era supply chain disruptions and geopolitical tensions that exposed the fragility of globally extended supply networks