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A few years ago, supply chains ran like clockwork. Long-distance logistics were predictable, costs were optimized, and global sourcing was king. Then came the pandemic, border closures, container shortages, and geopolitical conflicts—and that clockwork collapsed.
Now, more companies are asking: How do we avoid this kind of disruption in the future?
Enter nearshoring strategies—the act of moving production or sourcing closer to home or end markets. For many European manufacturers, this means relocating operations to Central and Eastern Europe (CEE), and for U.S. firms, the shift often leads to Mexico or Latin America.
But nearshoring isn’t just a trend. It’s a strategic move toward supply chain resilience. Let’s explore what that really means, why it’s growing fast, and how the smartest companies are making it work.
Why Resilience Is the New Supply Chain Currency
Supply chain resilience isn’t about reacting to the next crisis—it’s about being prepared before it hits. The numbers tell the story. Over the past decade, large companies lost an average of 42% of one year’s EBIT due to supply disruptions.
The old model of just-in-time is giving way to just-in-case. Companies are no longer betting everything on one region, one port, or one supplier. Instead, they’re spreading risk and bringing operations closer.
And nearshoring has emerged as one of the most effective ways to do it.
What Nearshoring Really Delivers
Done right, nearshoring strategies offer a triple win: speed, control, and stability.
1. Faster Response, Shorter Lead Times
Shipping a product from Shenzhen to Hamburg can take weeks. From Slovakia to Munich? A day.
By bringing manufacturing closer to customers, companies reduce transit times, buffer less inventory, and respond faster to market changes. In sectors like automotive, where flexibility is everything, this agility is game-changing.
2. Greater Control and Transparency
Far-flung supply chains mean more handoffs and less visibility. Nearshoring simplifies the logistics web, making it easier to oversee quality, timelines, and compliance. For many, this visibility is worth more than minor cost differences.
3. Lower Exposure to Global Risk
Tariffs, war, political tension—when your supplier is 8,000 kilometers away, every risk is magnified. Nearshoring to stable, nearby regions like CEE or Mexico brings operations within reach—and often within familiar regulatory systems.
4. Total Cost Can Still Work in Your Favor
It’s true: offshore labor is often cheaper. But once you factor in shipping costs, customs delays, higher inventory levels, and disruption risk, the total cost of ownership for nearshoring can be competitive—if not cheaper over time.
Why Central and Eastern Europe (CEE) Is Winning the Nearshoring Game
For European manufacturers, CEE is emerging as the clear nearshoring destination of choice.
Why? Let’s break it down:
- Skilled Workforce: Countries like Poland, Hungary, and Slovakia boast strong engineering talent and technical education systems.
- Cost Efficiency: Labor costs remain significantly lower than in Western Europe.
- Geographic Proximity: CEE countries can serve major EU markets within 24–48 hours by road.
- EU Integration: Many countries are EU members, simplifying trade, regulation, and customs.
- Incentives: Governments across the region offer generous tax breaks, grants, and SEZ advantages to manufacturers investing locally.
That’s why 2024 saw a 28% increase in manufacturing FDI into CEE, and why global firms—from automotive giants to pharma leaders—are placing their bets here.
Global View: Not Just a European Trend
Nearshoring strategies aren’t confined to Europe. In North America, U.S. companies are relocating production from Asia to Mexico, leveraging the USMCA and Mexico’s proximity.
In 2024, 69% of U.S. supply chains were expected to operate in the Americas, up from 59% just a year earlier. Globally, 97% of large companies are reconfiguring supply chains to become more resilient.
The strategy is clear: proximity matters. And it’s rewriting the manufacturing playbook.
Making Nearshoring Work: From Plan to Execution
Knowing where to go is just the start. Getting there—smoothly and successfully—requires more than a PowerPoint.
Here’s how leading companies are doing it:
1. Evaluate What to Nearshore
Not everything needs to move. Many companies begin by relocating critical or high-value components—the ones with long lead times, strategic importance, or frequent delays. Others look at low-volume/high-margin items to test new regional capacity before scaling.
2. Choose the Right Location and Ecosystem
Picking the country isn’t enough. The local industrial park, workforce availability, infrastructure, and supplier ecosystem all matter. A facility in Romania might offer cost savings, but if your customer is in France and logistics are weak, it might not be the best fit.
CEE offers strong diversity here: Poland for logistics, Slovakia for automotive, Hungary for electronics. Site selection should match operational goals, not just incentives.
3. Redesign the Supply Chain to Fit
Nearshoring is not a plug-and-play move. It means adjusting warehousing, transportation routes, supplier tiers, and even forecasting models. Dual-sourcing or pilot phases can reduce risk during the transition.
This is where interim leadership often plays a role. Companies bring in experienced supply chain managers or project leads to manage the shift, onboard local partners, and ensure continuity while permanent teams stay focused on existing operations.
4. Execute Without Disruption
Relocating production is never risk-free. But done right—with proper timelines, stakeholder communication, and buffer inventory—it doesn’t have to hurt business.
In fact, companies that have successfully nearshored often report smoother operations post-transition, faster reactivity, and higher customer satisfaction.
Real-World Success: What’s Actually Happening in 2025
- Intel is investing over $4B in a semiconductor facility in Poland—reinforcing its long-term bet on localizing tech production.
- Major EV makers are launching component plants in Hungary and Slovakia to tighten control over European supply chains.
- U.S. consumer goods firms are relocating packaging operations from Asia to Czechia, cutting shipping times and carbon emissions.
These aren’t pilot projects. They’re major investments grounded in resilience, speed, and sustainability.
Final Thought: Resilience Is Built—Not Bought
Nearshoring strategies aren’t about reacting to the last crisis. They’re about preparing for the next one—and building a supply chain that’s faster, closer, and stronger.
Whether you’re moving your first line or rethinking your entire network, it’s a high-stakes transformation. The companies doing it right are treating it as both a business strategy and an operational project.
That’s where CE Interim can help.
From interim project managers to supply chain leaders on the ground, we support businesses executing complex transitions across Central and Eastern Europe—without slowing down what they’re already running.
📌 Ready to explore your nearshoring strategy? Let’s talk about how interim leadership can get you there—faster, smarter, and with less risk.