Neal Elbaum Talks About the Rise of Nearshoring in Global Trade

In this episode, logistics expert Neal Elbaum talks about the rising trend of nearshoring in global trade. Discover why companies are moving production closer to home, how it improves supply chain resilience, and what it means for the future of shipping. Neal shares real-world insights, strategic tips, and the long-term benefits of this shift in a post-pandemic world. A must-listen for supply chain and logistics professionals.

Episode Transcript

Speaker 1 (00:00):
I've been in the shipping and logistics industry long enough
to know that the only constant is changed. Over the
past few years, I've witnessed a dramatic shift in how
global supply chains operate, fueled by pandemics, rising costs, political tensions,
and growing customer expectations. And if there's one trend that's
been gaining momentum with each passing quarter, it's near shoring.

(00:23):
Let me be clear, this isn't just another logistics buzzword.
Nearshoring is reshaping how companies structure their supply chains, and
it's doing so in a way that brings them closer
to their markets. Literally, we're seeing a movement away from
traditional offshoring practices, where manufacturing or operations were located in distant,

(00:44):
low cost countries, towards sourcing and producing in nearby regions.
Why is this happening, Well, the reasons are layered. Let's
start with risk, something every supply chain manager has had
to rethink post COVID. The pandemic didn't just disrupt transportation,
it exposed vulnerabilities in long stretched out supply chains. Businesses

(01:08):
realized that relying on one region or one factory half
a world away created a single point of failure. When
that system broke down, deliveries stalled, costs skyrocketed, and customer
satisfaction plummeted. Now companies are asking themselves tough questions, how
do we minimize these risks? How do we ensure continuity

(01:31):
even when the world turns upside down? The answer many
are landing on his near shoring. By bringing operations closer
to home, or at least to neighboring countries, companies are
gaining greater control over their supply chains. I've seen clients
cut lead times by thirty percent simply by relocating part
of their production to a nearby country. Not only does

(01:53):
this reduce transit costs, but it also means fewer customs hurdles,
faster market response, and a tighter grip on quality control.
It's not just about avoiding disruption, It's also about agility.
In today's economy, being able to pivot quickly is a
competitive advantage. Near shoring makes it easier to respond to

(02:16):
changes in demand, shifts in regulation, or unforeseen events. It
reduces the time between production and delivery, allowing businesses to
operate in a more responsive, data driven manner. One example
that Sticks with Me is a U dot s based
electronics company. I advised last year. They had relied heavily

(02:37):
on Southeast Asian suppliers for over a decade, but during
the pandemic they faced repeated delays, labor shortages, and unexpected shutdowns.
We helped them transition part of their assembly operations to Mexico.
The difference was immediate. Not only did they regain delivery reliability,

(02:58):
but they also improved customer setu wtisfaction and reduce total
landed costs, even with higher wages in the new region.
It's also worth noting that near shoring aligns with growing
interest in sustainability. Shorter supply chains mean lower fuel usage
and carbon emissions. That's something both regulators and consumers care
about deeply. I often remind businesses that logistics isn't just

(03:22):
about moving goods anymore. It's also about building trust and
showing accountability. Sustainable practices are no longer optional. Near shoring
helps companies align with these values in a measurable operational way.
But I also want to be realistic. Near shoring isn't
a one size fits all solution. It requires a careful

(03:44):
assessment of infrastructure, talent, availability, supplier ecosystems, and political stability
in the target region. I always advise clients to approach
it as a hybrid strategy. You don't have to move
everything overnight. Start by shifting the most critical or time
sensitive components of your supply chain and build from there.

(04:06):
Diversification is the real goal, not abandonment of offshore strategies,
but a smarter mix that reduces dependency. In my experience,
the companies that when in logistics are those that can
see around corners. Near shoring is one of those shifts
that may have started as a crisis response but is
quickly becoming a long term strategy. It's about future proofing

(04:28):
your operations, managing risk intelligently, and staying close to your customers,
not just geographically, but also in terms of service and responsiveness.
So yes, I talk about near shoring a lot these days,
not because it's trendy, but because I've seen how powerful
it can be when implemented thoughtfully. The world is changing fast,

(04:51):
and logistics must change with it. Bringing your supply chain
closer to home might just be the smartest move you
make this decade.