Nearshoring benefits for the professional clothing industry
- Nearshoring textile manufacturing increases resiliency in supply chains
- Reduce carbon footprint by nearshoring supply chains
- Limit transportation costs in shipping goods across the world
- Develop regional economies and communities by nearshoring processes
- Simplify partnerships with less language barriers and similar time zones
The coronavirus pandemic has created uncertainty for businesses around the world as border restrictions continue to disrupt supply chains. A lack of resilience in supply chains has been impacting once reliable businesses’ ability to deliver. Now is the time for the professional clothing industry to consider the nearshoring benefits for textile manufacturing and mitigate future risks.
Nearshoring benefits vs offshoring
Nearshoring offers businesses the distinct opportunity to outsource specific processes, such as textile manufacturing, to companies in nearby countries, whilst offshore manufacturing refers to outsourcing operations to overseas territories in far-flung corners of the world.
Why the professional clothing industry should consider the nearshoring benefits for textile manufacturing
Businesses in countries such as the UK, France, Germany, Canada and the US, struggle to manufacture products in mass quantities at competitive cost per unit prices compared to companies who choose to outsource their manufacturing processes to secondary countries around the world.
The PCIAW® speaks with our members continuously around the subject of nearshoring benefits of manufacturing closer to home and hosted a webinar on manufacturing and sourcing last November, to discuss the challenges that businesses are facing.
We found that there is a strategy of manufacturing speciality products locally, which takes into consideration, factors like size and fit, to cater for the growing diversity in end-users, whilst outsourcing the majority of production.
Nearshoring textile manufacturing increases resiliency in supply chains
Prior to the pandemic, many businesses were offshoring manufacturing to countries across the world for lower cost considerations, however, with the onset of a global health crisis, a new mindset has been ushered in, exploring how to increase manufacturing at home or to nearshore partners.
It is evident that the textile industry is dependent on the premise that the entire global supply chain is operating to its full capacity. The pandemic has shown us this cannot be taken for granted and a diversification of manufacturing processes is required to provide businesses’ supply chains the resilience that their customers expect. It is imperative that businesses act upon this issue and where it is not possible to manufacture in home countries, companies should endeavour to find and collaborate with, reliable, nearshore partners.
Reduce carbon footprint by nearshoring supply chains
Businesses across the world have a tendency to offshore manufacturing to the Asian continent due to their established manufacturing base, high quality and low cost. Whilst this could be necessary for some businesses, transitioning a proportion of textile manufacturing closer to home or with nearshore partners can help to reduce a company’s carbon footprint.
Using the UK as an example, businesses who manufacture goods in China are regularly transporting goods back and forth with a travel distance of 4,831 miles each way, whereas companies who nearshore manufacturing to countries such as Portugal or Tunisia are transporting goods 1,126 or 1,312 miles each, respectively.
Limit transportation costs in shipping goods across the world
Moving at least a proportion of manufacturing to nearshore countries could help to significantly reduce carbon emissions. In addition to this, by manufacturing closer to home, businesses can also improve their bottom line by reducing transportation costs by integrating efficiency and optimisation in the supply chain.
Consumer demand is increasingly factoring-in sustainability practices and corporate social responsibility policies into its buying decisions and by nearshoring textile manufacturing businesses can get ahead of the curve, instead of playing catch-up with their competitors already making the switch.
Develop regional economies and communities by nearshoring processes
Nearshoring manufacturing helps developing textile industries enter the market and creates the potential to bring more businesses back to regional communities at a time where many people have lost their jobs due to the pandemic. Nearshoring manufacturing facilitates companies to expand locally; creates resilience in supply chains and helps the growth of neighbouring country’s economies, which in turn can drive demand for the nearshored products in the very economies which were invested in.
Simplify partnerships with less language barriers and similar time zones
Working on similar time zones means that business hours are relatively similar, making it easier to coordinate tasks for teams in different countries.
Prepare to engage via remote communication methods, although a benefit of nearshoring is ease of access to manufacturing sites, compared to offshoring as partner countries are usually only 1 or 2 hour’s flight away, making business trips for quality control easier and less costly. Businesses can benefit from having advanced oversight and control of their product supply chain, which can enhance product quality and reduce waste.
Cultural similarities mean that there are not only similar time zones, but also shared cultural norms and less language barriers, which optimise communication and operational efficiency.
Nearshoring textile manufacturing in particular, offers businesses competitive advantages over rivals. Business partners in alternative countries can offer insightful advice from a unique perspective, anticipating unforeseen circumstances.
Register here for PCIAW® and OCO Global’s FREE webinar for nearshoring professional clothing in Tunisia.
On 27th January at 10am, PCIAW® and OCO Global, a world-renowned investment firm working with the British Embassy in Tunis, will host the Tunisian Textile Federation President and Vice President in an FREE webinar to inform and educate our audience about the opportunities and support that the country’s textile sector has to offer professional clothing buyers, suppliers and manufacturers in a nearshore partner.