The economic benefits of investing in nearshoring and onshoring are clear, but are many of these markets ready to take on this increased production?
The short answer is: no.
In order for these regions to scale up, a cluster-based approach is best suited to help those capacities come alive; unfortunately, there’s no clear answer as to who should be investing in those clusters.
As trade and tariff uncertainty continues to roil the supply chain, McKinsey & Company’s Saskia Hedrich and Karl-Hendrik Magnus shared a window into the nearshoring and onshoring decisions sourcing executives are grappling with—and some of the solutions.
Listen to the podcast to learn:
- What you should be looking at instead of landed cost
- Where you can find some of these viable clusters, and where more work is needed
- Why complexity doesn’t have to be a dirty word
- How the apparel industry can make itself more attractive to private equity
- Which postponement strategies aren’t being properly leveraged
- How to avoid having your timelines disrupted while waiting for raw materials
- Which new technologies are driving development and competitive advantages
- How sustainability plays into all of this
Magnus will present the first look at the findings of McKinsey’s & Company’s upcoming sustainability report at Sourcing Journal Summit New York on Oct. 17. Register to attend.