Nearshoring Presents New Challenges for Transportation Industry
It made a lot of sense. Countries like China, India, the Philippines and others could offer significant savings driven in large part by lower labor and production costs.For many manufacturers, offshoring became a success story. Lower costs more than made up for inconveniences such as time differences, language barriers, and long distance supply chains that required longer lead times and extensive international travel.Fast Forward to TodayOffshoring was a strategy that did not age well. Wages in China and other popular offshoring locations have been rising rapidly. Tempestuous global oil markets and currency fluctuations have translated into higher production costs. Political instability and environmental disasters from typhoons to tsunamis often had a major impact on supply chain operations. Security of intellectual property became a significant concern. Time differentials became more difficult to overcome.Once again, a variation of offshoring has become a viable alternative for a growing number of manufacturers.