Nearshoring and Reshoring Trends: Recent Updates
Latest Update & Forecast
Update: Jul 15, 2024
Nearshoring Trends have continued to evolve in the first half of 2024, with notable differences between the US and Europe. Key trends in nearshoring include:
Mexico as a Key Nearshoring Partner for the US:
QIMA data on inspections and audits shows that Mexico’s overseas procurement has been booming so far in 2024, with China as the top supplier partner (+69% YoY spike in inspection and audit demand in H1 ‘24)
However, US nearshoring initiatives in Mexico face challenges such as energy grid constraints and high bureaucracy, resulting in slower than anticipated growth.
Europe’s Successful Nearshoring Efforts:
European buyers have shown a steady increase in demand for inspections and audits in Turkey (+27% YoY in Q2 2024), making it a key supplier partner.
The Mediterranean region, including Egypt, Tunisia, and Morocco, now accounts for over 8% of European procurement, highlighting successful execution of nearshoring strategies.
Europe’s use of well-established trade links and diverse supplier hubs has facilitated more active nearshoring compared to the US.
Percentage of buyers planning to use nearshoring or reshoring as part of their 2024 strategy
Read the full report: Q3 2024 Barometer
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About Nearshoring Trends
At QIMA, we meticulously track nearshoring and reshoring trends through our ongoing surveys of more than 800 businesses worldwide, alongside a substantial dataset gleaned from the audits and inspections of over 30,000 clients. Our extensive industry experience across more than 100 countries sharpens our understanding of the global supply chain landscape, allowing us to provide accurate insights that are deeply informed by real-world dynamics.
Previous Updates
Q2 2024
EU-based buyers continue to favor nearshoring and reshoring, despite recent geopolitical uncertainties in the Red Sea region. On the other hand, US-based brands, despite expressing a strong interest in local sourcing (as seen in QIMA’s latest survey), appear to be slow in turning their nearshoring plans into reality.
Nearshoring accounts for 15% of all European brands and retailers' purchases as of Q1 2024, showing steady growth.
US interest in nearshoring is high, but actual implementation lags, with only modest growth in Q1 demand for audits and inspections in Latin and South America.
Mexico remains the foremost sourcing market for North American companies, but US companies may need to assess barriers to actualizing nearshoring plans.
EU companies are increasingly nearshoring or reshoring, compared to sourcing from overseas
Read the full report: Q2 2024 Barometer
Q1 2024
Over the past few decades, Chinese and South Asian suppliers have been the primary suppliers for US- and EU-based companies. However, QIMA’s 2023 auditing data saw a noticeable uptick in the relative share of respective nearshore and reshore regions of US and EU buyers, with these markets now accounting for 10% of their procurements.
US and EU buyers are transitioning to nearshoring and reshoring practices: A +2% YoY growth in nearshoring procurement from Western buyers from 2022 to 2023 is part of a continuing trend of shifting towards sourcing from local and neighboring regions.
Local and neighboring regions pose competition for overseas markets: Mexico surpassed China as the US's top trade partner in 2023, with a 16% increase in demand for inspections and audits.
Procurement from South Asian markets decreases as nearshoring trends rise: South Asia experienced a downturn in sourcing activities in 2023, with demand for inspections and audits reverting to 2021 sourcing levels.
Evolution of buyer interest in nearshoring and reshoring, 2022 - 2024, by respondent HQ location
Read the full report: Q1 2024 Barometer
Q4 2023
Mexico has emerged as the US's largest trading partner in 2023, surpassing China. This is in line with a global trend towards nearshoring, with over half (57%) of companies QIMA surveyed reporting that nearshoring is a key part of their supply chain strategy in 2023 and beyond.
In Q3 2023, US buyers’ demand for audits and inspections in Mexico showed a remarkable +17% year-over-year growth.
A growing preference for nearshoring to Mexico is reshaping the landscape for US buyers, offering them enhanced supply chain reliability and agility, potentially reducing lead times and transportation costs, while promoting economic cooperation with a close neighbor.
Survey of over 250 global businesses: “Is nearshoring included as part of your short and medium-term supply chain strategy?”
Read the full report: Q4 2023 Barometer
Q3 2023
US buyers exhibit a strong preference for nearshoring, rather than domestic sourcing, while European buyers are combining domestic and nearshoring sourcing.
Only 20% of US buyers reported increasing domestic sourcing in the past 12 months, preferring nearshoring to reshoring.
EU buyers take a more flexible approach combining domestic and neighboring region sourcing to shorten supply chains. In 2022-2023, 31% of EU buyers favor a mix of nearshoring and reshoring.
“Have you started purchasing or increased your purchases from suppliers in your home country or region within the last 12 months?”
Read the full report: Q3 2023 Barometer
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