Reshoring: Why Everyone’s Talking About It in 2025
Reshoring is quickly becoming one of the most exciting (and strategic) trends in the business world. While it might not have the same buzz as AI or blockchain, its impact on companies and local economies is massive. Why is that? Stick around, and I promise it’ll all make sense.
What exactly is Reshoring?
Reshoring, also known as “inshoring” or “onshoring,” is the process of bringing back manufacturing, production, or services to a company’s home country after they were previously outsourced overseas. It doesn’t mean offshoring is over, but companies are rethinking the balance between costs, quality, and risks.
A quick history lesson
The term “reshoring” gained traction after the 2008 financial crisis, when companies started questioning their lengthy global supply chains. But in recent years (thanks to pandemics, geopolitical tensions, and technological breakthroughs), the reshoring movement has truly taken off.
Why is Reshoring booming in 2025?
1. The perfect storm of logistics problems
From the Suez Canal blockage to port delays worldwide, global logistics have been a rollercoaster. Many companies began asking, “What if we could produce closer to home?”
2. The ESG factor (Environmental, Social, and Governance)
Producing locally doesn’t just cut down on carbon footprints—it also boosts a brand’s public image. After all, who doesn’t love supporting businesses that prioritize sustainability and local communities?
3. The tech revolution
Automation, robotics, and 3D printing have significantly reduced the cost of producing goods in high-income countries. Plus, AI is enabling greater efficiency and customization for local operations.
4. Government incentives
Governments around the globe are encouraging reshoring with tax breaks, subsidies, and policies designed to attract businesses. In the U.S., for example, the 2022 CHIPS Act was a major step toward reviving local semiconductor manufacturing.
How does Reshoring benefit companies?
1. Greater resilience: Companies producing locally have shorter, more reliable supply chains.
2. Full control: Being closer to production means fewer errors, better quality, and quicker problem-solving.
3. Local innovation: Proximity to tech hubs fosters collaboration and creativity.
Reshoring vs Nearshoring: Why nearshoring is still a win-win
While reshoring solves many supply chain issues, nearshoring often provides the same benefits, but with fewer trade-offs. For companies seeking proximity and control, nearshoring is a strategic middle ground:
💰 Lower costs: nearshoring avoids the steep labor and operational costs of reshoring to high-income countries.
🕒 Time zone alignment: Teams in nearby countries share similar work hours, making collaboration seamless.
🤝 Cultural compatibility: For instance, working with professionals in Latin America means fewer language and cultural barriers.
We’ve seen how nearshoring enables companies to stay agile, access top-tier talent, and scale efficiently. All without the challenges of bringing everything back home.
Learn more: Here you can see some success stories from our clients working with talent from LATAM.
Fun facts about Reshoring
1. Apple’s Reshoring Story
Did you know Apple started manufacturing some Mac models in the U.S.? It’s part of their strategy to reduce reliance on Asia and strengthen their supply chain.
2. Reshoring in fashion
Brands like Patagonia and Levi’s have explored local production to ensure ethical labor practices and minimize environmental impact.
3. The semiconductor boom
The global chip shortage pushed countries like the U.S., Germany, and Japan to invest billions in building local factories.
4. Latin America’s role
Although reshoring usually focuses on bringing operations back to developed countries, Latin America is becoming a key player as a hybrid between nearshore and reshore. Its proximity to North America and similar time zones make countries like Mexico and Brazil attractive alternatives.
Learn more: Latin America grows as a powerhouse in AI development
The bigger picture
Reshoring and nearshoring aren’t competing trends, they’re complementary strategies. Depending on your industry, combining both approaches could create a resilient, cost-effective supply chain. For example, reshoring critical components while nearshoring tech support or development work in Latin America gives you the best of both worlds.
Final thoughts
Reshoring isn’t just a passing trend; it’s a strategic response to a rapidly changing world. While not every company can make this leap immediately, it’s something all businesses should consider as they plan for the future.
At Lithium, we believe it’s not just about following trends—it’s about helping our clients stay ahead of them. If reshoring has caught your attention but you’re looking for a cost-effective alternative, nearshoring might be your next big move.
Curious to learn more? Let’s talk!
