Global supply chains are undergoing a transformative shift as companies seek ways to reduce risk and improve operational efficiency. Nearshoring — the practice of relocating manufacturing operations to nearby, accessible regions — has emerged as a powerful solution. By moving production closer to key industries, businesses can tackle supply chain disruptions, lower costs, and enhance flexibility. With the rise of agile manufacturing models and advanced technology integration, nearshoring is setting the stage for a more resilient, responsive supply chain that meets the demands of a volatile world.
Key Impacts of Global Events on Logistics and Supply Chain Costs
-
Trade Route Disruptions – Suez Canal and Red Sea Impact: The 2021 Suez Canal blockage resulted in $10 billion in daily losses, while Red Sea attacks in 2023 disrupted nearly $1 trillion in global trade volume, underscoring the fragility of critical trade routes.
-
Geopolitical Conflicts – Cost Surge from the Russo-Ukrainian War: The Russo-Ukrainian conflict in 2022 led to a 60% increase in shipping costs, which contributed to a 3.7% global rise in food prices—a stark reminder of the economic ripple effects of geopolitical instability on global supply chains.
-
Raw Material Shortages – $100 Billion Global Impact: In 2023, export bans on critical materials like metals, grains, and sugar caused by war risks and extreme weather resulted in an estimated $100 billion loss globally, forcing industries to secure alternative sources and underscoring the high cost of raw material supply chain vulnerabilities.
Source: Frost & Sullivan Analysis
Download Now
Companies to Action
Industery – Unified Procurement Software-as-a-Service (SaaS) Platform:
Industery launched a Unified Procurement SaaS platform in 2024, providing manufacturers with an all-in-one solution for procurement management, from strategic sourcing to delivery, using computer numerical control (CNC) machining, vacuum casting, and 3D printing for on-demand parts.
Jabil – Distributed Manufacturing (DM) and Contract Manufacturing:
Jabil’s distributed manufacturing strategy spans multiple global sites to support electronic product manufacturing. This approach allows companies to outsource production to skilled experts and leverage local talent through nearshoring.
Grupo Zeu – Nearshoring-as-a-Service (NaaS):
Grupo Zeu facilitates nearshoring to Mexico, partnering with technology providers to equip clients with advanced tools that enhance productivity and streamline manufacturing processes.
Source: Frost & Sullivan Analysis
Ready to Unlock the Top Growth Opportunities in Nearshoring?
Discover how nearshoring is transforming supply chains with streamlined logistics, skilled local workforces, and cutting-edge technology integration. Learn how companies are leveraging proximity to enhance flexibility, reduce costs, and build resilient, responsive operations in a volatile global landscape.
Simply fill out the form on the right to access our in-depth analysis on flexible manufacturing models, advanced technology adoption, regional developments, and the top growth opportunities shaping the nearshoring trend.
Sign up for a complimentary Growth Pipeline Dialog™
A Growth Pipeline Dialog is a structured discussion with our growth experts providing unparalleled technology intelligence and proven implementation best practices. This discussion will spark innovative thinking and help generate a pipeline of growth opportunities you can leverage to maximize your company’s future growth potential.
Upon completing the dialog session, you will receive a $1,000 honorarium as a token of our appreciation, which can be used towards the purchase of our products or services.
