Nearshoring: The Manufacturing Industry's Long-Term Resilience Strategy?

The manufacturing sector is navigating a period of intense disruption. Faced with the constant pressures of digital transformation, increasingly complex supply chain risks, and regulatory uncertainty, leaders are being forced to fundamentally rethink how they operate most effectively. Aggressive global sourcing being the default is no longer the ‘go-to’ strategy, giving way to a new focus on localisation and nearshoring.

The latest Dun & Bradstreet Manufacturing Pulse Survey 2025 reveals a significant commitment to bringing supply chains closer to home. However, this is a long-term strategic evolution, not a short-term tactical fix.

The Long-Term Commitment to Localisation

The overwhelming majority of the industry is preparing for a profound shift: a striking 62% of manufacturers surveyed plan to localise most, or all, of their supply chains. This commitment is driven by a desire to improve resilience, reduce exposure to global shocks, and mitigate the impact of complex regulations, including tariffs and sanctions.

Despite everyone agreeing on strategy, immediate action is limited. Nearshoring demands a reconfiguration of supplier networks and logistics, making it a costly and time-intensive undertaking. As a result, only 8% of firms say that nearshoring or localisation is a priority in the next 12 months. This patience signals that manufacturers are viewing this as a structural change to prepare them for the decade ahead, rather than a quick response to current volatility.

An Evolving Regional Footprint

The push toward regional sourcing is building on an already established base. Our research shows that 43% of manufacturers already report that most of their suppliers are based locally, within their own borders. This regional reliance has been growing over time, with over a third (34%) of manufacturers confirming they have relied more heavily on local and regional suppliers over the last five years than previously.

Looking ahead, the ambition for a consolidated supply chain is clear:

• 61% of manufacturers are looking to move more than half of their supply chains closer to home.
• An additional 26% are aiming to nearshore or localise around half of their supplier network.

This trend signifies a major strategic priority to transform approaches to key processes, mitigate risks, and increase efficiencies.

Geographic Differences and Sectoral Exceptions

The feasibility and focus on nearshoring varies significantly across geographies:

• The US is a leader in both current local sourcing and future ambition. 61% of US firms report that most of their suppliers are already based in-country. Notably, 10% of US firms plan to nearshore or localise their whole supply chain, a high figure compared to the 1-6% seen in all other surveyed regions.
• Central European countries report an average of around 45% of suppliers based locally.
• The UK faces structural constraints, with only 22% of suppliers based in-country; however, a further 50% are based in nearby EU countries.
• Switzerland and Sweden are among the most proactive, showing the highest percentage of manufacturers looking to nearshore or localise the majority (half or more) of their supply chains.

In terms of sectors, the Automotive industry stands as a key exception. Due to its established complexity and global logistics, it is expected to maintain a broader global footprint, differentiating its strategy from other manufacturing subsectors.

The Operational Edge

While the primary driver for nearshoring is de-risking against geopolitical instability and regulatory pressures, the strategic value extends far beyond simply reducing vulnerability. Manufacturers are also targeting operational benefits that translate directly into a competitive advantage. Nearshoring cuts down on long, expensive logistics routes, leading to faster time-to-market and a more agile response to shifting customer demand.

The close proximity that naturally comes with regional sourcing allows for stronger supplier collaboration, fostering joint innovation and making it easier to maintain high standards of quality control. This directly addresses the 31% of businesses that reported grappling with quality control issues due to complex supply chains. When suppliers are in the same region, issues can be spotted, diagnosed, and remedied faster, dramatically reducing the potential for a small Tier 3 defect to cascade into a major operational disruption upstream. By shortening the physical distance, manufacturers regain crucial control over their end-to-end process.

The Link to End-to-End Resilience

The rationale for nearshoring is rooted in the key operational pressures highlighted throughout 2025’s Manufacturing Pulse Survey:

• Regulatory Risk: Regulatory changes, such as tariffs and sanctions, are the single biggest supply chain challenge (33.4%). Nearshoring is a direct attempt to buffer manufacturing operations from the constant financial and logistical impacts of geopolitical turbulence.
• Operational Pain Points: Complex supply chains have tangible consequences: 31% of businesses report quality control issues, and nearly 29% face delivery delays and increased operational costs. By shortening the chain, manufacturers seek to regain control, improve quality, and mitigate the risk of unexpected failures due to unknown dependencies.
• The Data Deficit: The most common reason manufacturers do not monitor deeper supply chain tiers is the lack of data and information. While nearshoring simplifies the geographical spread, it does not eliminate the need for multi-tier visibility. Manufacturers must invest in digital traceability tools and data platforms to truly ensure the new regional networks are resilient and transparent.

This transformation requires more than just new location contracts; it demands new talent and resources. Firms must develop personnel who can better understand deep-tier supply chain management, navigate new sourcing models, and leverage new technologies. People are as important as the technology and processes needed to make this strategic change. Björn Gerster, European Centre of Excellence Lead, Manufacturing at Dun & Bradstreet, notes that investment in data and automation is "no longer optional for manufacturers, they are essential to establishing transparency across business partners". This transparency forms the foundation needed to effectively navigate regulatory complexity and supply chain disruption, ensuring that the move to nearshoring delivers its intended resilience.