Reshoring vs. Nearshoring: Key Differences in 2025

As supply chain challenges continue into 2025 — from rising tariffs to global freight delays — many U.S. businesses are rethinking where and how their products are made. Two strategies gaining major traction are reshoring and nearshoring.

While both aim to bring production closer to your customers, they’re not the same. In this guide, we’ll break down the difference between reshoring and nearshoring, why they matter, and how to decide which makes sense for your business.

Key Takeaways

Reshoring: means moving manufacturing back to the U.S. for more control.

Nearshoring: shifts production to nearby countries like Mexico to reduce shipping time and cost.

Both strategies reduce reliance on overseas suppliers and help minimize tariff risk.

3PL Center supports both models with nationwide fulfillment and real-time inventory tracking.

What Is Reshoring?

Reshoring refers to moving manufacturing or production back to the company’s home country, usually the U.S.

For example, a company that previously manufactured in China may now build the same products in Ohio or Texas to gain more control and avoid overseas risks.

Why companies reshore:

Rising overseas labor costs


Tariffs on imported goods


Supply chain disruptions (like COVID or Red Sea delays)


Desire for faster shipping to U.S. customers


Government incentives for domestic manufacturing

What Is Nearshoring?

Nearshoring means shifting production to a nearby country rather than one that’s overseas.

For a U.S. company, that might mean moving manufacturing from China to Mexico, Colombia, or the Dominican Republic. The goal is to reduce distance and improve supply chain speed without the full cost of domestic production.

Why companies nearshore:

Lower freight costs compared to Asia


Shorter lead times


Moderate labor savings compared to the U.S.


Lower tariff exposure


Cultural and time zone alignment

Key Differences Between Reshoring and Nearshoring

Cross-Border Cost Considerations

For businesses nearshoring to Mexico or other nearby countries, shipping terms like DDP (Delivered Duty Paid) and DAP (Delivered at Place) can play a major role in cost planning. With DDP, the seller covers duties and taxes upfront, which may reduce customs delays and improve cost predictability. With DAP, the buyer manages import costs, which can allow for more flexibility but requires experienced coordination. These terms become especially important when navigating evolving tariff policies or structuring your logistics strategy across borders.

Other Cost Factors to Consider

As reshoring and nearshoring continue to grow, businesses are also exploring strategies to offset tariff exposure and improve duty management. Options like using a Foreign Trade Zone (FTZ) can help reduce landed costs by delaying or lowering import duties. While not every company needs an FTZ, it’s one of several tools that can support a more cost-effective supply chain.

Reshoring vs. Nearshoring: Which Strategy Is Right for Your Business?

It depends on your priorities.

Choose reshoring if you want maximum control, faster delivery, and are willing to invest more in domestic operations.

Choose nearshoring if you want cost savings, quicker access to the U.S. market, and lower geopolitical risk than far-off countries.

Either way, you’ll likely need a logistics partner with infrastructure to support faster fulfillment, inventory visibility, and warehousing close to ports or borders.

How 3PL Center Supports Reshoring and Nearshoring Strategies

No matter which strategy you choose, 3PL Center helps you keep operations running smoothly:

Multiple Warehouses Across the U.S.: Fast 2-day shipping coverage with no need for express shipping

Scalable Storage and Fulfillment: From retail-ready pallets to large, oversized items, we handle a wide range of products

WMS With Real-Time Inventory Control: Manage inventory by SKU, location, or channel with full transparency

Direct-to-Consumer and B2B Fulfillment: Ship to customers, stores, or production facilities quickly and accurately

Whether you're receiving goods from a new factory in Mexico or a reshored operation in the Midwest, we can help you manage fulfillment efficiently and affordably.

Reshoring or Nearshoring, Logistics Matters More Than Ever

Reshoring and nearshoring are more than buzzwords — they’re supply chain strategies that can help reduce risk, save on shipping, and build a more resilient operation in 2025. But success comes down to logistics execution.

Need a fulfillment partner ready to support your reshored or nearshored supply chain?
Reach out to 3PL Center today to learn how we support smarter production and faster delivery.