CHARMING INSIGHTS

Why Your Company Should Consider Nearshoring in 2025

Written by Rich Ringeisen | Feb 21, 2025 12:28:37 AM

The global trade landscape is shifting quickly. Companies that fail to adapt risk unpredictable costs and supply chain disruptions. One of the most effective strategies to stay ahead? Nearshoring.

Nearshoring is the practice of relocating manufacturing and supply chain operations closer to a company’s primary market. Instead of outsourcing production to distant locations, businesses move operations to geographically closer and economically compatible regions. 


 

The goal is to enhance supply chain resilience and efficiency while reducing costs related to tariffs and transportation. With recent political shifts, now is the time for your company to consider nearshoring.

Geopolitical realities of 2025

Trump’s new trade plan

President Trump’s latest trade policy proposal, the Fair and Reciprocal Plan, has introduced significant uncertainty into global trade. Under this plan, the U.S. will match the tariff rate imposed by each country, meaning any tariff levied on American goods will be reciprocated on that country's exports, effectively creating a tit-for-tat trade environment.

For companies dependent on off-shore production, this means increased uncertainty in trade agreements, fluctuating import costs due to unpredictable tariff policies, and disruptions caused by retaliatory measures from other nations.

Nearshoring reduces lead times, giving your company the flexibility to navigate fluctuating tariffs. Rather than committing to large orders from distant suppliers and risking tariff increases before fulfillment, nearshoring enables faster production and delivery, keeping you ahead of changing tariffs.

Sustainability laws in Europe

Nearshoring also presents significant advantages in Europe, where the Ecodesign for Sustainable Products Regulation (ESPR) and the Digital Product Passport (DPP) Mandate are reshaping manufacturing and transparency requirements. To remain compliant, most companies will need to adapt their supply chains.

As businesses adjust their production strategies, nearshoring offers an efficient path to compliance. Relocating operations to nearby regions with aligned regulatory frameworks allows companies to work with manufacturers already adhering to EU standards, avoiding costly supply chain overhauls while enabling ongoing compliance with evolving regulations.

Benefits of nearshoring

Beyond addressing current legislative shifts, nearshoring delivers year-round advantages that make it a powerful long-term strategy. By bringing manufacturing closer to home, businesses gain greater oversight and quality control while cutting transportation costs and accelerating delivery times. 

This proximity minimizes production delays, enabling companies to respond swiftly to shifting market demands and consumer needs. Additionally, nearshoring fortifies supply chain resilience by reducing exposure to geopolitical and economic disruptions. 

Charming’s global presence

At Charming, we’ve strategically positioned our manufacturing operations across the globe to ensure that our customers benefit from the advantages of nearshoring. 

We offer flexible production options for businesses navigating U.S. tariffs in the U.S., Mexico, and Guatemala. In the EU, our manufacturing facilities in Turkey and France ensure reliable supply chain solutions while maintaining compliance with ESPR.

And if those locations don’t meet your needs, we have additional production facilities across other regions. Whether you're a new partner exploring opportunities or a long-time customer refining your supply chain, Charming is here to support you. Reach out to our team today to build a resilient, adaptable, and future-ready supply chain together.