DOI: 10.21637/GT.2016.2.01.

Production Nearshoring in Europe and their consequences to the Supply Chain


The objective of this paper is to investigate the geographical relocation of the production function in nearby countries called Nearshoring. After some basic definitions and showing the past development, the theoretical background of the location decision was stated. Based on anempirical survey among German manufacturing companies the decision criteriawere evaluated. Furthermore, the current and future applying of Nearshoring and the preference of current and future locations were investigated. Finally, the consequences for the Supply Chain were described. A SWOT analysis offers a framework for manufacturing companies in Europe and especially in Germany with strategic insights and advices how to position their production plants in the near future. Nearshoring attractive countries like Hungary shall gain directions how to prepare themselves for this trend in order to be able to deliver skilled employees and an attractive environment.

KEYWORDS: offshoring, onshoring, outsourcing, insourcing, Germany, location decision
JEL Codes: L23, M11

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