The pros and cons of “friend-shoring” production

The multiple crises of the past few years are pushing American businesses to seek better market conditions by relocating production and sourcing. One possibility is a reliance on “friend-shoring,” or the placement of manufacturing in countries with shared values. While there’s no official definition of who qualifies as a “friend,” examples include the European Union, United Kingdom, Japan, and South Korea. The United States is also seeking to broaden the list by introducing new regional initiatives such as the Indo-Pacific Economic Framework for Prosperity, and the recent U.S.-Africa Leaders Summit. This approach signals a shift toward trust-based partnerships over purely economic factors in global supply chain management.

But will this new approach benefit organizations? It’s time for decision-makers around the globe to weigh how friend-shoring could reshape their supply chain operations — and their businesses.