Navigating the New Normal: Near-Shoring and Friend-Shoring in Global Sourcing Post-Pandemic

Introduction

The COVID-19 pandemic disrupted global supply chains, exposing vulnerabilities in highly centralized and cost-optimized sourcing models. As factory shutdowns and geopolitical tensions intensified, companies reconsidered traditional offshoring strategies that prioritized low production costs over resilience. In response, two strategic approaches near-shoring and friend-shoring emerged as critical frameworks for navigating the new normal in global sourcing. Near-shoring refers to relocating production closer to a company’s primary market, while friend-shoring emphasizes sourcing from politically aligned or economically stable partner countries. Together, these approaches aim to mitigate risk, improve supply chain agility, and enhance long-term sustainability.

The shift toward these models reflects a broader rebalancing of priorities in global trade. Rather than focusing solely on cost efficiency, firms are increasingly valuing reliability, transparency, and geopolitical security. For example, disruptions during the pandemic revealed the dangers of overdependence on single-source suppliers, particularly in regions vulnerable to lockdowns or political instability (Gereffi, 2020). Near-shoring offers reduced lead times and improved coordination, while friend-shoring builds trust through alliances with nations that share similar regulatory standards and strategic interests (The White House, 2022).

As industries ranging from fashion to technology adapt to this evolving landscape, the adoption of near and friend-shoring signals a structural transformation in global sourcing. This transition not only reshapes production networks but also influences labor markets, environmental practices, and international relations. Understanding these shifts is essential for businesses seeking to remain competitive in a post-pandemic world defined by uncertainty and interdependence.

Background

Before the COVID-19 pandemic, many companies relied heavily on traditional global sourcing strategies that kept costs low. This meant making their products in distant countries where labor and materials could be found at a better price. While this helped to save the business money, it also created long and complicated supply chains. These systems were a lot harder to control and were more easily disrupted (Voorhis, 2023). Companies depended on everything running perfectly, including factories, shipping, and labor.

When the pandemic first started, these systems began to fail. Factories shut down, shipping was delayed, and there were not enough workers to keep up with demand. Consequently, many companies faced critical material shortages. Research from Xu et al. (2020) shows that relying too much on distant suppliers made supply chains super risky. Bonadio (2021) also explains that global supply chains were not prepared for such large disruptions happening all at once.

Because of these new issues, companies began changing how they sourced their products. Many began using nearshoring and friend-shoring, which move production closer to home or work with trusted countries. These changes help make supply chains shorter, easier to manage, and less vulnerable. Even though the pandemic caused many challenges, it also pushed companies to build stronger and more flexible supply chains for the future.

Trend Analysis

The COVID-19 pandemic fundamentally reshaped global supply chains, accelerating the shift toward near-shoring and friend-shoring (sourcing from geopolitical allies). Several key drivers explain why brands are increasingly adopting these strategies. First, the pandemic exposed the fragility of highly globalized supply chains. Lockdowns, port congestion, and shipping delays revealed how overreliance on distant suppliers created major disruptions and unpredictable lead times. Second, geopolitical tensions and trade conflicts—including tariffs, the Russia–Ukraine war, and U.S.–China tensions—have pushed companies to reduce exposure to politically risky regions (Verisk Maplecroft, 2024).   Third, firms are prioritizing supply chain resilience and risk diversification. Recognizing that dependence on a few countries creates strategic vulnerabilities.

According to da Rocha et al. (2025), the shift toward nearshoring and friendshoring did not happen overnight. Research on nearshoring goes back to the mid-2000s, but the number of studies on the topic jumped significantly after 2020, which shows just how much the COVID-19 pandemic accelerated the trend. The pandemic exposed how risky it is to rely on long, stretched-out global supply chains, and companies started looking for ways to move production closer to home or to countries they could trust politically. On top of that, events like the U.S.-China trade war and the Russia-Ukraine conflict pushed companies even further in this direction, with geopolitical tensions becoming just as important as cost when making sourcing decisions (da Rocha et al., 2025).

What makes nearshoring and friendshoring complicated, though, is that they are not the same thing, and they do not always lead to the same results. Da Rocha et al. explain that nearshoring is mainly about geographic proximity, moving operations to countries that are physically closer to home, while friendshoring is driven more by geopolitical alignment, sourcing from countries that share similar values or political ties, regardless of how far away they are. The research also shows that the effects of the strategies are mixed depending on the country and industry involved. Some companies benefit from shorter lead times and better supply chain flexibility, while others face higher costs or find that the countries they are moving to do not have the infrastructure or labor force to fully replace what they had before (da Rocha et al., 2025).

Day-to-day operations in apparel sourcing have shifted as companies rethink where they produce goods. Many professionals now choose nearshoring to improve speed and control. When production is closer, teams can restock inventory faster and respond to demand changes in real time. Lead times can drop from months to just weeks, which helps brands adjust to trends quickly (Sourcing Playground, 2023). Managers can visit factories more often, which improves communication and quality control. Shorter supply chains also make it easier to solve problems and reduce delays. This has made nearshoring more common in fast fashion and other trend-driven markets.

At the same time, not all professionals choose nearshoring. Cost is still a major factor. Producing closer to home often leads to higher labor and production expenses. Some nearby regions also lack skilled workers or strong infrastructure, which limits production capacity (Sourcing Playground, 2023). Because of this, many companies continue to use offshore sourcing for large-scale production. They rely on distant suppliers to keep costs low, even if it means longer shipping times.

Current trends indicate that companies are not fully adopting a single strategy. Instead, they are mixing nearshoring with offshore production. This approach helps reduce risk while still managing costs. After the pandemic, many professionals now focus more on reliability, flexibility, and supply chain stability rather than just low prices (Deepwear, 2025). Nearshoring is growing, but it is part of a broader shift toward more balanced and flexible sourcing decisions.

Additional drivers include rising transportation costs, sustainability pressures, and the need for faster speed-to-market, especially in industries like fashion. Looking ahead, the future of near-shoring and friend-shoring is unlikely to involve a complete reversal of globalization. Instead, supply chains will become more regionalized and diversified, combining global sourcing with strategic production hubs closer to key markets. Experts suggest a “multi-shoring” model, where companies balance cost efficiency with resilience by spreading production across allied or nearby countries (Holland, n.d.). Technological advancements, such as automation and AI-driven forecasting, will further support this shift by reducing reliance on low-cost labor abroad.

The impacts of moving production closer are mixed. On the positive side, near-shoring improves lead times, flexibility, and collaboration while reducing the risk of disruption and environmental impact. It can also stimulate regional economic growth and job creation. However, these benefits come with trade-offs, including higher labor and production costs and potential inefficiencies from reduced global specialization (GigaBPO, 2026). At a macro level, widespread friend-shoring could even reduce global economic output by fragmenting trade networks and increasing costs. Near-shoring and friend-shoring represent strategic rebalancing rather than a full retreat from globalization. As companies prioritize resilience, speed, and geopolitical stability, supply chains will continue evolving toward a hybrid model that blends global reach with regional security.

Implications for Sourcing Professionals

The implications of friendshoring and nearshoring have greatly impacted supply chain strategies for brands in a post-pandemic society, creating new opportunities and higher risks. As highlighted in the Fibre2Fashion article (2026), nearshoring has enabled companies to gain greater supply chain visibility, faster production times, and improved communication and responsiveness to customer demand. On a day-to-day level, this really allows brands to restock inventory faster, as well as respond to sudden demand changes and reduce reliance on long forecasting cycles.  These new operational advantages are especially valuable after the disruptions of the pandemic, where many of the global supply chains proved very fragile and unpredictable. Moving closer to production ports and neighboring countries, brands will reduce shipping delays and create better monitoring quality. This also enables more frequent supplier communication through in-person factory visits and faster problem-solving when these issues arise.

However, the benefits from nearshoring often come with higher labor and production costs, though, forcing brands to carefully balance efficiency, productivity, and sustainability. At the same time, according to information from the Financial Times, they emphasize that friendshoring introduces a different level of complexity, as it relies on geopolitical relationships that can shift quickly (“Transcript,” 2025). Although sourcing from politically aligned countries may reduce risks associated with trade conflicts, it does not take away uncertainty. Changes in political leadership, tariffs, or international relations can suddenly make former partners unreliable. As a result of this, brands have to actively monitor political changes, diversifying their supplier base as well as avoiding one sourcing region. This requires brands to be flexible and adaptive, which, in turn, creates long-term cautious decision-making. It is important that brands integrate nearshoring and friendshoring to maintain cost efficiency and strong supplier relationships, and invest in digital supply chain capabilities to improve transparency and forecasting. When executed effectively, these strategies improve speed, resilience, and competitiveness. However, if managed poorly, this can increase costs, create instability, and damage the overall reputation.

Conclusion

In conclusion, the shift towards near-shoring and friend-shoring represents a huge change in global sourcing strategies, especially after the COVID-19 pandemic. As companies continue to navigate through these global disruptions, many have reevaluated what these long-distance sourcing models look like.  Some have been redesigned to base strategies on reducing risk, improving stability throughout the supply chain, and looking into domestic supplier partnerships.

However, near-shoring and friend-shoring offer some great advantages in terms of reliability and control, which come with challenges like increased production costs and limited supplier availability.  Overall, this topic highlights how supply chains have evolved since the pandemic and how global conditions continue to change.  Businesses will need to remain flexible and strategic to stay competitive in the uncertain global environment.  Research by Khan et al. (2023) highlights the importance of “Triple-A” supply chains- agility, adaptability, and alignment- which help companies respond more effectively to disruptions through data-driven decision-making.

References

Bonadio, B. (2021). Global supply chains in the pandemic. Science Direct. https://www.sciencedirect.com/science/article/pii/S0022199621001148

da Rocha, A., da Fonseca, L. N. M., & Kogut, C. S. (2025). Deciphering relocation paths: A systematic literature review of near-shoring and friend-shoring. Journal of International Management, 31(5), Article 101282. https://doi.org/10.1016/j.intman.2025.101282

Deepwear (2025). Strategic sourcing in apparel manufacturing: Why nearshoring is accelerating under geopolitical pressure. https://deepwear.info/blog/strategic-sourcing-in-apparel-manufacturing-why-nearshoring-is-accelerating-under-geopolitical-pressure

Fibre2Fashion. (2026, March 23). Nearshoring rises as brands seek supply chain visibility. https://www.fibre2fashion.com/news/textile-rfid-news/nearshoring-rises-as-brands-seek-supply-chain-visibility-309187-newsdetails.htm

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Holland, J. (n.d.). Supply chains, redrawn: Lessons from business leaders across industries. Ajg.com. https://www.ajg.com/cl/noticias-y-perspectivas/features/redrawing-global-supply-chains-survey

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Sourcing Playground. (2023). What are the benefits of nearshoring for fashion brands? https://blog.sourcingplayground.com/what-are-the-benefits-of-nearshoring-for-fashion-brands

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