The Crucial Role of Rented/Leased Semi Trailers in Nearshoring
If you aren’t familiar with the concept of nearshoring, you likely will be soon. After decades of offshoring (i.e., moving certain operations overseas to lower costs), many U.S. businesses are bringing their manufacturing closer to home today.
In defining nearshoring as the inverse of offshoring, Forbes says, “This means that companies are progressively transferring part of their production to countries close to their markets and with similar time zones, in order to minimize the effects of disruptions in supply chains.” And, quoting a Proper Insights & Analytics survey, one reason is that “disruption and shortages in the supply chain can take up to 6-12 months to normalize.”
There are multiple drivers for this strategy shift, including the risk of another pandemic, instability in Europe from the Ukraine-Russia war, and growing geopolitical tensions in Asia. These and other concerns have led to increased pessimism about the U.S. government’s ability to anticipate and mitigate supply chain disruptions. As a result, many companies are proactively shortening their supply chains.
One of the most common destinations for nearshoring is Mexico. That makes sense for several reasons, from our shared border to longstanding trade relationships. However, this pivot will surely cause some “growing pains” as companies scramble to rethink the processes it affects. Rather than relying on fine-tuned procedures for getting materials to and from countries like China, they are having to...
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