Reshoring strategies and nearshoring in post-pandemic US supply chain resilience

Omotolani Eniola Akinbolajo *

Department of Economics, Adeleke University, Osun State, Nigeria.
 
Review
International Journal of Science and Research Archive, 2022, 06(02), 174-193.
Article DOI: 10.30574/ijsra.2022.6.2.0160
Publication history: 
Received on 12 June 2022; revised on 22 July 2022; accepted on 25 July 2022
 
Abstract: 
The COVID-19 pandemic exposed critical vulnerabilities in global supply chains, prompting a fundamental reevaluation of manufacturing strategies among US companies. This article examines the accelerating trend of reshoring and nearshoring as mechanisms for enhancing supply chain resilience in the post-pandemic environment. Through comprehensive analysis of total cost of ownership models, policy incentives, and case studies of successful implementations, we demonstrate the strategic shift from globalization to regionalization in manufacturing networks. The research presents a novel hybrid sourcing framework that enables organizations to balance efficiency and resilience by strategically diversifying production locations based on product characteristics and risk profiles. Quantitative facility location models incorporating geopolitical risk factors further enhance decision-making precision. The findings reveal that effective reshoring strategies extend beyond reactive risk mitigation to encompass strategic competitive advantage through shortened lead times, enhanced quality control, and improved responsiveness to market demands. This research offers theoretical contributions to supply chain regionalization theory while providing practical implementation guidance for supply chain executives navigating manufacturing reconfiguration.
 
Keywords: 
Reshoring; Nearshoring; Supply Chain Resilience; Total Cost of Ownership; Manufacturing Strategy; Facility Location; Geopolitical Risk
 
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