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 options.  To adapt, today's manufacturing strategies need to emphasize proximity to demand.  McKinsey & Company refers to this as next-shoring.  What are the econo.....