Why Nearshoring Is Reassuring the Textile Industry Right Now

Maor Yur
February 1, 2021

We’ve heard a lot about the changes that textile businesses are going through in these past few months. Processes include accelerated digital growth, new product offerings, and more. One transformation that’s particularly interesting to discuss is nearshoring, the process of building a company’s manufacturing operations close to where it is based. If parts of the company were already located overseas, the company would perform a reshoring process to bring them back home. Due to the pandemic, 64% of manufacturers said that these procedures are now likely

There are many reasons behind such a critical decision, which generally include the desire to increase control over the manufacturing process, avoid instability in developing countries, and more. But right now, there’s a specific logic that leads businesses in the fashion world to move closer to home. Let’s discuss the current unique factors influencing companies to embark on a nearshoring or reshoring procedure.   

Trust issues: Forming a more reliable supply chain 

As we all know, the outbreak started in China, which is considered a strategic location for manufacturers in the textile field (as well as many other verticals). This created a global supply chain struggle we’ve never experienced before. 94% of Fortune 1000 companies stated that they face supply chain challenges and businesses everywhere found themselves without materials, workers, and answers. 

Nearshoring increases control over many supply chain segments and allows manufacturers to rely more on the flow they build. Given the current and likely future instability in many areas worldwide, it feels like the safest bet for many manufacturers. Considering that the fashion world is moving to an on-demand purchasing mode, it makes sense for companies to want their operations closer so they’ll be able to respond immediately. 

Neighborly Love: Supporting local businesses

When Walmart chose to promote US-based businesses lately, it was done as part of a movement calling on individuals and businesses to buy local goods. It’s no secret that the pandemic has created an economic crisis for many, including in the apparel industry, and companies are encouraged to collaborate with others in their area to boost the local economy. 

Some countries are offering incentives to businesses that choose to conduct a reshoring procedure. The US National Economic Council offered to pay reshoring expenses, and we can expect to see more governments follow suit. There’s an opportunity for countries to bring businesses back home, and offering to lighten the burden of the move just might do the trick, especially at a time like this. 

Nearshoring is also great for the environment since it minimizes the pollution created by planes and ships. 

For textile-focused businesses, bringing the production line closer means locating their printing systems closer as well. The powerful combination of immediate availability and Kornit’s digital printing solutions creates an on-demand, transparent manufacturing process that companies and customers appreciate. We’ve recently created a fun, short video explaining this idea:

The textile industry is a global village, and we believe that it will find new ways to work without boundaries. It’s safe to say that when the pandemic is over, we’ll discover a very different industry than the one we’re used to.