Perspectives

Nearshoring 101

Nov 16, 2023

In this podcast, Rodrigo Echagaray explains the concept of nearshoring and its implications for supply chains and global markets. They discuss the shift of manufacturing back to North America, the impact on sustainability, and the integration of the economies of all North American countries. They also explore the potential increase in prices of goods due to nearshoring and the need for policy alignment between Mexico and Canada.

16:11

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Quick takeaways

Nearshoring is the next big thing in global markets, driven by the need for a reliable supply chain.

Fiscal incentives and subsidies in industries like clean energy and semiconductors are accelerating the trend of nearshoring.

Deep dives

Near-shoring: The Shift in Supply Chain Strategy

Near-shoring is gaining importance as companies recognize the need for a reliable and safe supply chain. With trade conflicts and geopolitical troubles arising, companies are rethinking their supply chain strategies and bringing production closer to home. The US, in particular, is well positioned to attract investments that are moving back from China to the Americas. Fiscal incentives from the US and Canada, especially in industries like clean energy and semiconductors, are driving this trend. Near-shoring not only benefits the manufacturing sector but also has a ripple effect on employment, real estate, and other industries, contributing to the overall growth of the North American economies.

Introduction

2min

The Shift to Nearshoring: Opportunities for the Americas

4min

The Impact of Electric Vehicle Battery Plants and Policy Alignment in North America

2min

Coordination between Mexico and Canada in Near-Shoring and Friend-Shoring Policies

6min

Increased Economic Integration and Investment in the North American Region

2min

The term ‘supply chain issues’ conjures visions of empty shelves, delays and high prices. And it’s not just an inconvenience for customers, it’s costing companies, too. That’s where the concept of nearshoring, or friendshoring can help. This episode, we're getting a nearshoring 101 lesson from Rodrigo Echagaray, the Global Head of Product Management and Head of Latin America Equity Research for Scotiabank. He’ll break down what exactly the term means, what implications it has beyond supply chains, and why it’s the next big thing in global markets.

Key moments this episode:

1:04 — Is nearshoring the same as friendshoring?

2:24 — Is nearshoring the opposite of offshoring?

3:32 — What specific issues are driving nearshoring’s popularity?

4:32 — What’s the incentive to move manufacturing back to North America now?

5:56 — How does nearshoring tie into sustainability?

8:30 — What is the benefit to Canada or North America of a policy of nearshoring?

9:44 — Will the consumer see prices of goods go up thanks to nearshoring?

11:51 — A surprising fact about where nearshoring investment in Mexico is coming from

12:35 — How much nearshoring is already taking place?

14:06 — How nearshoring helps integrate the economies of all North American countries

15:02 — Is nearshoring the next big thing in global markets?

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Perspectives

Nearshoring 101

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Near-shoring: The Shift in Supply Chain Strategy

Factors Driving Near-shoring: Supply Chain Risks and Cost Considerations

Implications and Future Prospects of Near-shoring

Remember Everything You Learn from Podcasts