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Nearshoring and Friendshoring: New Strategies in Global Logistics in 2025

English

30 August 2025

Nearshoring and friendshoring have become two of the most significant strategies shaping the future of global logistics and supply chain management. In recent years, companies worldwide have faced unprecedented disruptions: the COVID-19 pandemic, geopolitical conflicts, raw material shortages, escalating trade wars, and even logistical bottlenecks such as port congestion or blocked maritime routes. These challenges revealed a harsh reality—the traditional model of relying heavily on distant, low-cost production hubs is not always resilient enough to guarantee continuity of supply.

As a result, businesses are rethinking their global strategies and seeking ways to strengthen supply chain resilience, reduce exposure to risk, and gain more control over their operations. Nearshoring—bringing production closer to consumer markets—and friendshoring—relocating to politically stable and trusted partner countries—are two responses that have quickly gained momentum. Far from being just trends, these approaches are becoming cornerstones of a new global logistics order where security, agility, and sustainability are just as important as cost savings.

What is Nearshoring?

Nearshoring is the practice of relocating manufacturing or sourcing operations to countries geographically closer to the final consumer markets. Instead of relying on long-distance supply chains—such as producing in Asia for the European or North American markets—companies shift part of their production to nearby regions that reduce transit times and increase flexibility.

This approach addresses one of the key vulnerabilities exposed in recent years: the dependence on lengthy, fragile supply chains that can be disrupted by international crises, shipping delays, or geopolitical tensions. By reducing the distance between production and consumption, nearshoring allows companies to adapt more quickly to fluctuations in demand and to better manage logistics costs.

Advantages of Nearshoring

  • Shorter lead times: Less distance means faster response times and greater flexibility.
  • Lower transportation costs: Reduced expenses associated with long-haul shipments.
  • Demand flexibility: Easier to adapt quickly to fluctuations in demand.
  • Sustainability: A smaller carbon footprint thanks to shorter transport routes.

Examples of Nearshoring in practice

  • European companies moving production from Asia to Eastern Europe.
  • North American companies setting up factories in Mexico to serve the U.S. and Canadian markets.

What is Friendshoring?

Friendshoring goes beyond geographical considerations. It involves relocating production or sourcing activities to politically stable and allied countries with whom there are secure and trusted trade relations. Unlike nearshoring, which focuses on proximity, friendshoring prioritizes strategic alliances and shared political or economic interests as a safeguard against disruptions.

This concept has gained traction as global tensions rise, particularly in contexts where reliance on countries with strained political relations has created vulnerabilities. By shifting operations to “friendly” nations, companies reduce exposure to sanctions, sudden trade restrictions, or supply interruptions caused by instability.

Benefits of Friendshoring

  • Reduced geopolitical risks: Avoids dependence on countries subject to tensions or sanctions.
  • Supply security: Ensures stability by relying on trusted trade partners.
  • Business confidence: Encourages long-term cooperation in more predictable environments.

Examples of Friendshoring

  • The United States strengthening alliances with countries like Mexico, Canada, or India to reduce dependency on China.
  • Europe turning to suppliers in Morocco and Turkey, markets with greater affinity and stability.

Impact on Logistics and Supply Chains

The adoption of nearshoring and friendshoring is reshaping how supply chains are designed:

  • Reduced long-distance dependencies: Less exposure to risks on intercontinental routes such as the Suez Canal or the Pacific.
  • More regional and shorter chains: Greater importance of logistics hubs located closer to consumer markets.
  • Higher initial costs: Producing closer to markets or in allied countries may be more expensive but offsets risks of disruptions.
  • Improved resilience: Companies prioritize supply security over extreme cost reduction.

Implementation Challenges

Despite their advantages, these strategies also bring challenges:

  • High initial investment to relocate factories or suppliers.
  • Limited production capacity in nearby or allied countries.
  • Need for adequate logistics infrastructure to support new distribution networks.
  • Balancing cost and security, since producing closer to home is usually more expensive.

In conclusion

Nearshoring and friendshoring represent strategic responses to a world where globalization no longer guarantees absolute efficiency or complete security. More and more companies are realizing that success lies not only in producing cheaply but also in ensuring continuity, minimizing risks, and building resilient supply chains.

While these strategies involve additional costs and logistical challenges, they also provide the opportunity to design supply chains that are more agile, regional, and secure, better prepared to withstand today’s volatile environment.

In the near future, companies are likely to combine both models, creating hybrid logistics ecosystems that blend the geographic advantages of nearshoring with the trust and stability of friendshoring—defining the new map of global logistics.

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