Reshoring is the reverse of offshoring. Reshoring refers to the process of bringing back manufacturing, or other business operations, that had been outsourced to other countries to the home country. This can be done for a variety of reasons, such as to improve supply chain resilience, to take advantage of new technologies, to reduce costs, or to be closer to customers.
Reshoring is being driven by a collapse of globalisation, which in turn has had multiple drivers:
- Tariffs and other protectionist measures
- Covid related "Health and safety" requirements
- Brexit related customs documentation
- A shortage of shipping containers in the supplier country
- Other logistics challenges
- Regional conflict, subsequent sanctions against a belligerent and their counter-sanctions
- Regional conflicts and piracy effecting supply and distribution
- Supply and distribution pinch-points closed, such as Panama and Suez canals
- Limited capacity for air freight
- Reducing the risk of intellectual property theft
- Addressing labour and environmental concerns associated with overseas production
- Using coal for electricity generation
- "National Interest" type export controls, or otherwise "weaponising" of resources
- Tax incentives, potentially including Business Rates, in Enterprise Zones