The global manufacturing landscape is undergoing a fundamental shift. For decades, companies chased lower costs by moving production overseas, but today, nearshoring and reshoring have emerged as strategic imperatives—pushing manufacturers to bring operations closer to home, improve resilience, and prepare for future disruptions.
In AFIMAC’s latest, in-depth position paper, we explore the “why,” the “how,” and the “what’s next” for manufacturers navigating this transformation.
Read on for a preview of what you will find in the position paper, or download the paper now.
What’s Happening: The Rise of Nearshoring and Reshoring
While offshoring to Asia once promised low-cost efficiency, the pandemic, global instability, rising costs and now tariffs have all but erased offshoring’s value proposition. Today, more manufacturers are nearshoring—bringing operations to nearby countries like Mexico—or reshoring, by returning them to U.S. soil. This strategic shift is helping companies cut supply chain risks and better align production with market demands.
This is no passing trend. It’s a structural shift that signals a new era in manufacturing strategy—one where proximity, control, and resilience outweigh cost savings alone.
Trends Backed by Data
This migration is supported by hard numbers. A 2024 Kearney report showed the largest annual spike in reshoring activity to date. Meanwhile, Bain & Company found that over 80% of large manufacturers plan to shift supply chains closer to market. Mexico has now surpassed China as the U.S.’s top trading partner.
Yet, while intent is high, execution is still in progress. Most companies are midstream—planning, investing, and beginning to realign. That means we’re not at the end of the migration—we’re right in the middle of it.
Why It’s Happening
Over the last decade, several forces have been pushing the supply chain shift:
- Rising Offshore Labor Costs
- Political Instability
- Advancements in Automation
- National Security and Resilience
Now, in 2025, an emerging global trade war adds another compelling force for nearshoring and reshoring. All of these factors combined make a compelling case for nearshoring—not just as a cost strategy, but as a long-term business continuity plan.
Challenge: The U.S. Labor Gap
Bringing production back home is far from a perfect solution. Persistent labor shortages are a major challenge. A Deloitte study estimates a 1.9 million-worker gap in U.S. manufacturing—a number expected to double by 2035.
Solving the labor issue requires a multi-pronged approach:
- Rebuild and Retrain the Workforce
- Automate Where Possible
- Adopt Dynamic Staffing Models
The Outlook: 2025 and Beyond
The momentum behind reshoring is strong—but not without headwinds. In 2025, new U.S. tariffs and rising tensions—even with allies like Mexico and Canada—have introduced some uncertainty. Political friction, cuts to incentive programs, and talk of recession could create short-term disruption.
However, major shifts like these don’t reverse overnight. Most manufacturers already moving in this direction are unlikely to abandon their plans. In fact, increased tariffs could actually make U.S. goods more competitive, accelerating domestic production.
The bottom line: while uncertainty may pause some decisions, the overall trend line points toward more localized, resilient supply chains.
How AFIMAC Helps Manufacturers Navigate the Shift
Nearshoring is not just a manufacturing issue—it’s a workforce readiness and risk management challenge. Companies need partners to help them navigate uncertainty and maintain operational continuity as they scale or shift production.
At AFIMAC, we specialize in helping manufacturers bridge these gaps—with temporary skilled travel labor, workforce continuity planning, and executive protection that ensures operations stay on track, even during disruption.
Contact: info@afimacglobal.com | 1-800-554-4622 or Explore our services at AFIMACGlobal.com
Want the Full Report?
The Great Manufacturing(Re)Migration offers a deep dive into the evolving landscape of global manufacturing strategy. Beyond tariffs, trade agreements, and offshoring shifts, this paper explores the full spectrum of reshoring and nearshoring trends—from the historical forces that sparked change to the technologies making local
production more viable.
It highlights key data from industry leaders, examines the labor challenges facing U.S. manufacturers, and outlines actionable strategies for building resilient, cost-effective supply chains in an uncertain world. Whether you’re planning a relocation or reevaluating your global footprint, this is essential reading.
