The Reshoring Trend: 3 Reasons to Manufacture in Europe Instead of Asia

Updated on December 18, 2022
In this article
In this article

In recent years, there has been a growing trend of companies “reshoring” their manufacturing operations from Asia to Europe. This trend is driven by a number of factors, including the desire for shorter and more sustainable supply chains, as well as the need to be closer to customers and respond to their changing needs and preferences. The ongoing COVID-19 pandemic has also accelerated the reshoring trend, as companies look to reduce their reliance on distant and potentially disrupted supply chains.

Reshoring, Offshoring, and Nearshoring

Reshoring is the process of bringing back production or services to the country where they were originally outsourced from.

Offshoring is the practice of moving products or services to a different country, typically to take advantage of lower labor costs or other business-related benefits.

Nearshoring is similar to offshoring but involves moving products or services to a country that is closer geographically and often culturally.

All three practices are ways for businesses to save money and increase efficiency, but they differ in terms of the location of the outsourced work.

History of Reshoring

The concept of reshoring, or bringing manufacturing operations back to the home country, has been around for many years. However, it has gained increased attention in recent years as companies have sought to reduce their reliance on distant and potentially disrupted supply chains. In the past, many companies chose to offshore their manufacturing operations to Asia, particularly China, in search of lower labor costs and more favorable business conditions.

However, this strategy has become increasingly risky and costly, due to factors such as rising labor costs, trade tensions, and the ongoing COVID-19 pandemic. As a result, many companies are now reconsidering the benefits of manufacturing in their home country, or in other nearby countries such as Europe. The reshoring trend is expected to continue to grow in the coming years, as companies seek to reduce their risks and costs, and improve their sustainability and customer responsiveness.

3 Reasons to Manufacture in Europe Instead of Asia

1. Shorter supply chains

One of the main reasons why companies are reshoring their manufacturing operations to Europe is the desire for shorter and more sustainable supply chains. The long and complex supply chains that are typical of manufacturing in Asia can be vulnerable to disruptions, such as natural disasters, political instability, and trade disputes. In contrast, Europe offers shorter and more reliable supply chains, which can help companies to reduce their risks and costs.

2. Strong sustainability credentials

In addition to shorter supply chains, companies are also attracted to Europe because of its strong sustainability credentials. Europe is known for its strict environmental regulations and its commitment to renewable energy and circular economy principles. This makes it an attractive location for companies that are looking to reduce their environmental impact and improve their sustainability.

3. A closer relationship with customers

Another factor driving the reshoring trend is the need to be closer to customers and respond to their changing needs and preferences. In today’s fast-paced and dynamic business environment, companies need to be able to adapt quickly to changing market conditions and customer demands. By manufacturing in Europe, companies can be closer to their customers and more responsive to their changing needs.

The Future of Reshoring

The reshoring trend is expected to grow in the coming years, as more and more companies discover the benefits of manufacturing in Europe. This trend is not only good for companies, but also for European workers and the broader economy. By bringing manufacturing jobs back to Europe, companies can help to create new jobs and stimulate economic growth.

At Wonnda, we help customers to execute reshoring and find trusted manufacturers in Europe. Our platform help you to successfully reshore your manufacturing operations to Europe by offering you direct access to many trusted European suppliers and manufacturers.

Conclusion

In conclusion, the reshoring trend is a positive development that is benefiting companies, workers, and the environment. By manufacturing in Europe instead of Asia, companies can enjoy shorter and more sustainable supply chains, improve their sustainability, and be closer to their customers. This trend is expected to continue to grow in the coming years, and Wonnda can help you to take advantage of the opportunities that it presents. Signup below to access a trusted base of European manufacturers and build your next consumer product in Europe together with us!

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Are you interested in producing your private label products in Europe but don’t know how to find the best manufacturers for your business? Wonnda can help you find a manufacturer that connects your business with the best manufacturer. Launching your brand through a private label or contract manufacturing could be just the step you need to take your business to the next level.

Here at wonnda, we work with top European producers for private labeling and contract manufacturing. The first step in getting your product to market is probably the most crucial – finding the right production partner for your project. The great advantage of wonnda is that you can let us do the heavy lifting. Just tell us quickly about your project or product idea. We will then approach the most suitable producers for your project and connect you with them. Sounds interesting? Then fill out the form!

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Set up your account in less than 3 minutes and begin your journey with Wonnda. Unlock endless possibilities for your business, bring new products to market and streamline your sourcing process from idea to launch on one single platform.

About the author
Martin Ditzel
Martin Ditzel is the co-founder of Wonnda and was born in Düsseldorf. He holds a BSc in General Management from EBS Universität and an MSc in Business Information from Rotterdam School of Management. He's a tech and business expert who's passionate about using technology to make a positive impact.
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