Nearshoring Gains Momentum Among U.S. Businesses
The global shipping disruptions of recent years have prompted U.S.-based businesses to consider nearshoring, with South America’s east and west coasts emerging as attractive locations for manufacturing facilities. According to a survey by DP World, 92% of respondents deem the creation of dedicated inter-Americas supply chains crucial to their strategic planning. The survey, titled “Shifting Supply Chains: Navigating a New Inter-Americas Trade Landscape,” was conducted in mid-2024 and included shippers, beneficial cargo owners, freight forwarders, 3PLs, and non-vessel operating common carriers.
Challenges and Benefits of Diversifying Supply Chains
The survey revealed that cost implications (43%) are the primary factor in deciding whether to diversify, consolidate, or maintain current supply chains. Other concerns include fluctuating shipping costs (36%), cargo transit delays (31%), and logistical difficulties (43%). Despite these challenges, nearly half of the respondents (47%) believe that a more diversified supply chain reduces the risk of disruption from events such as natural disasters, political upheaval, and industrial action. In terms of strategies, 34% are prioritizing supplier relationships, while 29% are focused on expanding their geographical reach.
Despite the economic and political uncertainties in South America, 70% of the surveyed companies expressed optimism about their prospects in the region over the next five years. This shift in sourcing strategy marks a significant change from the dominance of China and Southeast Asia in exports to U.S. corporations since the 1970s.
