For decades, offshoring was the go-to strategy for companies looking to reduce costs and scale quickly. But the world has changed—and so has the equation.
From global pandemics and port delays to shifting trade policies and rising customer expectations, today’s manufacturing environment is defined by volatility. The result? A growing number of companies are rethinking the structure of their supply chains—and turning to localized production as a more strategic, sustainable, and resilient path forward.
This isn’t just about bringing manufacturing “home.” It’s about building smarter, lower-risk systems that are better aligned with business goals and market demands.
Offshoring’s Decline: Efficiency at a Cost
Offshoring once promised predictable savings through labor arbitrage and scale. But over time, many companies have come to realize that low unit costs don’t equal low total costs. Complex global supply chains often come with hidden challenges:
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Long lead times and delayed fulfillment
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Inventory bloat and excess safety stock
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Quality control and communication breakdowns
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Exposure to geopolitical risk, tariffs, and regulatory shifts
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Higher emissions and environmental impact from global freight
According to McKinsey, supply chain disruptions lasting a month or more occur every 3.7 years on average—and can erase up to 45% of annual EBITDA over a decade for companies unprepared to manage them.
In today’s market, agility, visibility, and sustainability matter as much as cost—if not more.
Why More Companies Are Reshoring or Regionalizing
Leading manufacturers are making proactive moves to shorten and simplify their supply chains. Here’s why:
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Faster lead times: Local production reduces transit windows and accelerates delivery
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Reduced risk: Fewer disruptions from global instability, pandemics, or port congestion
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Improved transparency: Easier to monitor quality, traceability, and compliance
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Lower emissions: Reduced reliance on long-haul freight means a smaller carbon footprint
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Increased flexibility: Easier to adapt to changing customer demand or local regulations
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Stronger supplier collaboration: Co-development and problem-solving become faster and more effective
According to the Reshoring Initiative, U.S. reshoring and foreign direct investment (FDI) manufacturing job announcements totaled 307,000 in 2023—the second highest on record—highlighting the growing shift toward domestic production.
In short: reshoring isn’t just about cost—it’s about control.
Is a Localized Model Right for Your Business?
Not every product or process needs to be reshored—but many benefit from a more regionally aligned approach. Consider the following factors:
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Product complexity – High-value or highly regulated products often require more oversight
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Customer proximity – Local production supports faster response and customization
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Cost-to-serve – Total landed cost—including freight, duties, rework, and waste—may favor local sourcing
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Sustainability pressure – Regulatory and customer demands are increasing around emissions and transparency
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Risk mitigation – A diversified, regional network reduces single-point-of-failure vulnerabilities
A 2023 Gartner survey found that 74% of supply chain leaders have either moved or plan to move portions of their manufacturing or sourcing closer to end markets within the next three years.
How Leading Manufacturers Are Adapting
It’s not always a binary choice between offshoring and reshoring. Many companies are:
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Adopting hybrid sourcing models, such as China+1 or Mexico–U.S. combinations
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Building regional hubs for faster delivery and inventory optimization
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Automating domestic production to close cost gaps and improve consistency
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Re-evaluating material selection to reduce dependency on overseas inputs or specialty components
The common thread? Control, flexibility, and resilience.
Reshoring as a Path to Operational Sustainability
Localized supply chains also support broader environmental and operational goals. Benefits include:
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Lower transportation emissions through shorter supply routes
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Improved material recovery and closed-loop recycling systems
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Stronger compliance with evolving ESG and supply chain transparency regulations
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Greater ability to collaborate with local suppliers on waste reduction and packaging optimization
These advantages make reshoring not just a sourcing decision, but a strategic investment in long-term performance and sustainability.
Conclusion: Smarter, Safer, Closer
Reshoring is no longer a reactive move. It’s a deliberate shift toward a supply chain strategy that prioritizes agility, risk reduction, and sustainability. The companies making this shift today aren’t stepping backward—they’re building a more resilient and competitive foundation for the future.
Ready to Rethink Your Sourcing Strategy?
At Impact Plastics, all of our products are produced in the United States—supporting faster lead times, lower supply chain risk, and more sustainable outcomes for our customers.
Contact our team to learn how we can support your reshoring goals and help you build a more resilient supply chain.