Both reshoring (bringing production back to the US) and nearshoring (moving it closer, typically to Mexico or Central America) have gained traction as hedges against long, disruption-prone supply chains — but they solve different problems and come with different tradeoffs.
Reshoring: Maximum Control, Maximum Cost
Bringing manufacturing fully back to the US eliminates most cross-border logistics risk and transit time, but typically comes with the highest labor and facility cost increase of the available options. It tends to make the most sense for products where speed-to-market or IP protection outweighs cost sensitivity.
Nearshoring: A Middle Path
Moving production to Mexico or Central America can cut transit time from weeks to days compared to Asia-based manufacturing, while retaining more labor cost advantage than full reshoring — particularly relevant for USMCA-eligible goods that also gain a duty advantage.
Questions Worth Asking Before Committing
- How much of your landed cost is currently transportation and inventory carrying cost versus unit manufacturing cost?
- Does your product qualify for USMCA preferential treatment if nearshored to Mexico?
- How disruption-sensitive is your current supply chain, and what would a 4-6 week delay actually cost you?
Reshoring and nearshoring aren't really about patriotism or trend-following — they're a risk and cost tradeoff, and the right answer depends entirely on your specific product economics.