Nearshoring for sustainability?

: exploring key drivers in the manufacturing industry in Europe

Abstract

In an era where global disruptions have reshaped the manufacturing landscape, companies are increasingly rethinking their supply chain strategies. This dissertation explores the emerging trend of nearshoring within the manufacturing industry in Europe, with a particular emphasis on sustainability. The research is primarily concerned with the identification of the key drivers influencing the decision to nearshore. Furthermore, it aims to determine whether sustainability represents a significant motivating factor in this context. The study employs a qualitative research methodology, undertaking a comprehensive examination of interviews with industry experts. The initial research question investigates “Why do companies decide to move their production closer to home?”, revealing that resilience, risk mitigation, and cost reductions represent the primary drivers. However, as the world faces the growing urgency of sustainability, the second question probes deeper: “Is sustainability a key driver for companies to implement nearshoring strategies?”. The findings of this study indicate that sustainability remains a secondary motivation, although it is receiving greater attention due to regulatory pressures and shifting consumer expectations. The research concludes that a holistic evaluation of the nearshoring business case is essential to make well-founded relocation decisions that are economically viable while also promoting environmental and social sustainability. The conclusions not only contribute to the academic discourse but also provide actionable insights for industry leaders aiming to future-proof their operations in an unpredictable world.

Date of Award	15 Oct 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Moreira da Cruz (Supervisor)