Nearshoring, is it happening? Because of 3D?

In the ever-changing world of manufacturing, something interesting is brewing: nearshoring. It's the idea of bringing manufacturing operations closer to where the action is - the market. And guess what's helping this trend along? 3D technology. But is nearshoring really a thing, and how does 3D tech fit into the manufacturing mix? Let's dive into this manufacturing whirlwind to learn more.

Nearshoring isn't just industry jargon; it's about getting closer to your customers. They want stuff fast, and they want it their way. Being closer can make all the difference.

Evidence of nearshoring is right there in the manufacturing data. Companies are rethinking their supply chains. Instead of making everything in one far-off location, they're setting up shop closer to where they sell. According to the Shipping Market Review 2023 , the distance adjusted demand for container freight is actually declining, meaning fewer long distance deliveries as a whole. Also, the amount of goods being shipped in the first four months of 2023 was about 6% less than what was shipped during the same time period in the previous year.

Countries like Vietnam, Malaysia, Thailand in Asia have also seen upticks in manufacturing investment and activity as companies diversify from concentrating production in China.?

The Made in Europe initiative aims to increase the EU's share of global value chains in strategic areas as it sees nearshoring in Europe key to achieving this goal too. Its main objectives are to ensure European manufacturing leadership, achieve climate-neutral and circular manufacturing, master digitalization, and create valuable manufacturing jobs, aiming to make European manufacturing sustainable, competitive, and people-centered. In fact, 70% of Europe’s largest retailers have reviewed their supply chains because of COVID-19 and many have relocated production to domestic economies. For example, Zara has doubled their profits , by reducing costs and responding to fashion trends and consumer interests in a more on-demand way, all thanks to nearshoring. By moving production from Asia to Portugal and Spain, Zara has cut clothing design to sales time from 4-5 weeks to just 2 weeks.

Nearshoring & 3D printing

This shift is thanks, in part, to cool tech like 3D printing. 3D printing, or as some call it, additive manufacturing, is shaking things up. It lets you make products on the spot, customizing products without the need for massive production lines. And that's a big deal for nearshoring.

According to a 2022 survey ,? 61% of manufacturers believe that 3D printing technologies can help them reduce costs and enable flexibility. 3D printing isn't just about making things; it's about making them fast. Unlike the old way of doing things, which involved complex supply chains and slow production, 3D printing is all about quick turnarounds. Need to tweak a product? No problem. It's as easy as hitting print.

What's even cooler is the customization factor. 3D printing lets manufacturers tailor products to your liking. You want something unique? No worries – they can do that, making customers happy and boosting brand loyalty. Beyond speed and flexibility, nearshoring powered by 3D tech has some other perks. It's greener, thanks to less shipping, and it's shifting the map of where stuff gets made.

For example, nearshoring in Mexico is gaining traction as supply chain challenges persist, with industries like automotive, construction, and fashion utilizing 3D printing for enhanced competitiveness. Mattel's substantial investment in its Monterrey plant showcases the trend of bringing production closer to consumers. This shift, coupled with 3D printing capabilities, is reshaping manufacturing strategies and fueling optimism about Mexico's economic recovery, according to the IMF's predictions.

Supporting further evidence of nearshoring, Ford opened a new 3D printing centre to support production of its first all-electric vehicle to be built in Europe. The facility houses 12 advanced 3D printers capable of producing a wide range of plastic and metal components, from small, intricate parts to larger ones measuring up to 2.4 meters in length. Ford employees have easy access to this technology, as they can submit requests for custom-designed components via a mobile app. The benefits of 3D printing for Ford include flexibility, time and cost savings, and sustainability through material reuse.?

Boeing also uses 3D printed cabin parts and other components in its 777X aircraft, producing these parts at facilities close to its assembly plant, meaning they can iterate designs faster and store less inventory.

But that's not all—innovative companies like Authentise are in the mix, offering high-tech software solutions. Authentise's software is like a guiding light for manufacturers, giving them real-time data insights and predictive maintenance powers. So, when it comes to staying ahead in the face of supply chain curveballs, nearshoring, 3D printing, and Authentise have your back.

#nearshoring #3dprinting