Offshoring

Offshoring is the practice of relocating manufacturing, production or business operations to another country. Companies often pursue offshoring to reduce costs, access specialized labor, expand production capacity or serve global markets more efficiently. Offshoring is the opposite of reshoring, which involves bringing manufacturing or production operations back to a company’s home country.

For decades, offshoring has been a common strategy for manufacturers seeking lower labor costs and access to global supply chains. Recent disruptions have highlighted some of the risks associated with highly globalized supply chains, including navigating geopolitical instability and transportation delays. The challenges have prompted manufacturers to reevaluate sourcing and production strategies, contributing to increased interest in reshoring and regional manufacturing models.

The location of operations remains a key consideration in material sourcing and supply chain planning. M. Holland helps customers navigate the complexities of global resin markets while balancing factors such as cost, availability, lead times and supply chain resilience.