Proximity Becomes Paramount

Off-shoring began in the 1990s as a way to tap into the advantages of lower-wage workers in developing nations in order to minimize production costs.  Obviously, for lots of products, low labor costs still provide a decisive competitive advantage.  However, wages are steadily rising, while energy economics are rapidly evolving, reframing manufacturers’ strategic optionsTo adapt, today’s manufacturing strategies need to emphasize proximity to demand.  McKinsey & Company refers to this as next-shoring.  What are the economic forces and technologies driving this shift?  What are the implications for corporations, nations, and individuals?  We’ll provide the answers you need.

This content is for TRENDS SUBSCRIPTION members only.
Login Join Now