Article Reshoring Updated August 6, 2025 9 min read By Shantala Hickey

Reshoring: Why is it Being Considered Today, and What Does it Involve?

In 2025, reshoring is no longer a niche concept but a growing movement as businesses re-evaluate their global supply chain strategies — seeking resilience, quality, and speed while countering global risks and rising overseas costs.

Reshoring manufacturing production back to the home country

9 Reasons companies
reshore

SH Shantala HickeyESG Division lead, GPSI · 15+ years in procurement & production planning

DEFINITION

Reshoring (also onshoring or inshoring) is the strategic process of bringing manufacturing and production back to the home country after moving it overseas. It contrasts with offshoring (relocating abroad to cut costs) and nearshoring (moving to nearby countries — e.g. U.S. firms producing in Mexico or Canada).

Key Takeaways

Reshoring brings production home; nearshoring brings it close; offshoring sends it away.
It’s driven by tariffs, resilience, rising overseas costs, speed, and automation.
Government incentives — the CHIPS Act and Inflation Reduction Act — make it financially attractive.
Benefits span quality, speed, control, simpler chains, and a greener footprint.
Challenges include labour shortages, higher wages, and capital investment.
Implementation starts with a TCO evaluation and finding domestic suppliers.

At a GlanceReshoring at a glance

Criteria	Summary
What is reshoring?	Moving production back to the home country after years of offshoring, to improve resilience, control, and costs.
Main reasons for reshoring	Geopolitical risks, rising overseas costs, supply chain disruptions, need for speed, technological advances, government incentives, and consumer preference for local goods.
Key benefits	Higher product quality, faster delivery, reduced total costs, better control, simpler supply chains, stronger brand reputation, and a greener footprint.
Main challenges	Skilled labour shortages, higher labour costs compared to offshore, heavy investment needs for automation and new facilities, and complexity in rebuilding supplier networks.
Steps to implement reshoring	Strategic evaluation of costs, identifying domestic suppliers, investing in automation, workforce development, and building strong local partnerships.
Industries and companies involved	Electronics (Apple, Element Electronics), apparel (Brooks Brothers), automotive (Ford), appliances (GE, Samsung, LG), and more. SMEs are also participating heavily.
Future outlook	Reshoring is expected to grow beyond 2025, driven by the need for supply chain resilience, sustainability goals, political factors, and rapid shifts in global economics.

The ConceptWhat is reshoring?

Reshoring, also known as onshoring or inshoring, is the strategic process where companies bring manufacturing operations and production facilities back to their home country after previously moving them overseas. It contrasts with offshoring, which involves relocating manufacturing processes abroad, often to reduce labour and operational costs.

Another related strategy is nearshoring, where operations are moved to nearby countries — such as U.S. companies moving production to Mexico or Canada — aiming for a balance between cost savings and logistical convenience. In 2025, reshoring is no longer a niche concept but a growing movement as businesses re-evaluate global supply chain strategies.

The DriversWhy companies consider reshoring

After decades where offshoring was the default for cost reduction, the global landscape has shifted. Several converging factors now make reshoring increasingly attractive — and sometimes necessary:

1Geopolitical uncertainty & trade regulations

Tariffs and instability make global chains vulnerable; higher import duties and compliance costs make domestic production more appealing.

2Supply chain resilience

Pandemics, conflicts, and port congestion exposed the risks of distant hubs; per the MEP National Network, firms now prioritize stability over pure cost.

3Rising overseas costs

Offshore labour and transportation costs are rising and volatile; reshoring brings greater cost predictability.

4Demand for speed & agility

Reshoring shortens distances and lead times, letting companies respond quickly to changing customer expectations.

5Technological advancements

Automation, robotics, AI, and IoT make domestic manufacturing viable — even in high-labour-cost countries — by reducing dependence on cheap labour.

6Government incentives

The 2022 CHIPS and Science Act (semiconductor subsidies) and 2022 Inflation Reduction Act (clean-energy tax credits) support the “Made in America” movement.

7Emphasis on quality control

Proximity gives greater oversight, easier enforcement of standards, quicker problem resolution, and higher-quality products.

8Sustainability & environment

Shorter transport distances cut the carbon footprint of logistics, aligning with ESG goals and greener operations.

9Consumer preferences

“Made Locally” labels enhance brand reputation and appeal to consumers focused on quality and ethical production.

The UpsideThe benefits of reshoring

Bringing manufacturing back home offers numerous advantages beyond simply mitigating risks:

Improved product quality: closer oversight and domestic standards.
Shorter lead times: reduced transit means faster delivery.
Reduced, predictable costs: lower shipping, no tariffs.
Enhanced control: over processes, quality, and IP.
Simplified supply chains: less logistics and customs complexity.
Improved communication: fewer language and time-zone barriers.
Access to skilled workforce: domestic labour and expert management.
Economic contribution: job creation and community development.
Increased agility: faster adaptation to market demand.
Reduced environmental footprint: shorter transport, fewer emissions.
Stronger brand reputation: domestic production builds loyalty.

The Trade-offsChallenges and considerations

Despite its many advantages, reshoring isn’t without challenges. Companies face:

Skilled labour shortages: a major hurdle in filling manufacturing jobs domestically.
Higher labour costs: compared to traditional offshore manufacturing.
Rebuilding supply chains: vetting and finding domestic suppliers takes time.
Capital investment: facilities and automation require significant funding.
Transition risks: moving production can disrupt supply chains without careful planning.

The PlaybookHow to implement a reshoring strategy

Steps for a successful reshoring transition:

Strategic evaluation

Assess feasibility using tools like Total Cost of Ownership (TCO) calculators.

Supplier identification

Scout and partner with reliable domestic suppliers.

Roadmap development

Create a clear action plan to minimize disruptions.

Technology investment

Leverage automation, AI, and digital manufacturing technologies.

Workforce development

Invest in training programs to close the skills gap.

Building partnerships

Develop strong ties with domestic suppliers and partners.

Resources like the MEP National Network are available to assist small and medium manufacturers (SMMs) in the reshoring process.

In the Real WorldExamples of reshoring

Companies successfully reshoring operations include:

Brooks BrothersSuit, shirt, and tie manufacturing back to U.S. factories.

Element ElectronicsReshored TV production from China to South Carolina.

AppleMoved some computer manufacturing back to the U.S.

GEShifted appliance manufacturing back to Kentucky.

FordReshored some aspects of production.

YpsomedInsulin pen production from Mexico to Switzerland, with automation.

SennheiserMoved some production from China to Romania.

Kemppi OyReturned production from India to Finland.

GtechShifted vacuum cleaner manufacturing back to the UK.

Samsung & LGExploring moving appliance production to the U.S.

NaturaReshored production from Asia to Brazil, focused on sustainability.

Final WordsA long-term strategic shift

The reshoring trend is set to remain strong into 2025 and beyond, driven by ongoing geopolitical risks, supply chain demands, technological innovations, and changing global economics. Companies are expected to continue investing in local manufacturing as part of a long-term strategic shift.

Reshoring has moved from niche to mainstream — a long-term strategic shift toward resilience, control, and a greener, more local supply chain. — Shantala Hickey

Frequently asked questions

What is reshoring?

What is the difference between reshoring, offshoring, and nearshoring?

Offshoring relocates manufacturing abroad, often to reduce labour and operational costs. Reshoring brings it back to the home country. Nearshoring moves operations to nearby countries, such as U.S. companies producing in Mexico or Canada, balancing cost savings with logistical convenience.

Why are companies reshoring in 2025?

Drivers include geopolitical uncertainty and tariffs, supply chain resilience, rising overseas costs, demand for speed and agility, technological advances in automation and AI, government incentives like the CHIPS Act and Inflation Reduction Act, quality control, sustainability, and consumer preference for local goods.

What are the benefits of reshoring?

Benefits include higher product quality, shorter lead times, reduced and more predictable costs, greater control over production, simpler supply chains, better communication, access to skilled workers, job creation, increased agility, a reduced environmental footprint, and a stronger brand reputation.

What are the challenges of reshoring?

Challenges include skilled labour shortages, higher labour costs than offshore manufacturing, the time and resources needed to rebuild domestic supply chains, significant capital investment in facilities and automation, and transition risks that can temporarily disrupt supply chains.

How do you implement a reshoring strategy?

Start with strategic evaluation using Total Cost of Ownership analysis, identify domestic suppliers, develop a roadmap to minimize disruption, invest in automation and digital manufacturing, develop the workforce through training, and build strong local partnerships.

About the author

Shantala Hickey

Shantala joined GPSI’s team in 2022, following her post-graduate diploma in Environmental Management. She is responsible for the ESG Division and the corporate social responsibility strategy. Before joining GPSI, she held several management positions at Bombardier Aerospace as well as Galderma, a company operating in the pharmaceutical and cosmetics industry. She has more than 15 years of experience in procurement, logistics, and production planning — and the environment and sustainable development are undoubtedly her greatest passions.

Thinking about bringing production home?

GPSI helps manufacturers evaluate the total cost of ownership, identify and vet domestic suppliers, and build the resilient local networks that make reshoring work. Let’s find a time to connect.

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