As the global business landscape evolves rapidly due to globalization and technological advancements, companies worldwide are increasingly adopting strategies that enable them to effectively respond to new challenges and seize emerging opportunities. One key strategy is nearshoring, which involves relocating supply chains to more cost-effective locations closer to end customers.
What is nearshoring?
Global supply chains have always been exposed to numerous risks stemming from disruptions caused by unexpected events, changing trade agreements, or geopolitical unrest. In response to the escalating risks, an increasingly common de-risking strategy adopted by global companies is to modify supply chains based on low-cost Asian locations and move production closer to end customers, known as nearshoring. Bringing supply chains closer to the end consumer is also in line with the ESG agenda, which aims to reduce the embedded carbon footprint of final products and create more sustainable business models.
Nearshoring is becoming an integral part of strategic planning for businesses seeking to build resilient, sustainable, and competitive supply chains in a rapidly changing global landscape.
Benefits of nearshoring
Nearshoring can be a strategic approach for companies aiming to make their operations more efficient, responsive, and resilient while also supporting broader goals around sustainability and economic stability.
By relocating business operations and services to neighboring or nearby countries, nearshoring offers several benefits:
Cutting transportation costs
Moving production closer to an end customer gives possibility to save on transportation costs.
Lower labor costs
Nearshoring gives possibility to choose partner with cheaper labor force.
Resilience of supply chains
Shorter supply chain is more resilliant to global disruptions in transportation
Access to larger talent pool
Labor force with higher education and qualification gives possibility to optimalizaton and automatization of processes.
Reduced environmental footprint
Shipping is responsible for 3% of the total CO2 emissions and about 10% of those from transportation.
Culture and communication
Labor force with higher education and qualification gives possibility to optimalizaton and automatization of processes.
Łódź has emerged as one of Poland's most promising business relocation destinations
Łódź's strategic location within Poland and Europe is a key factor driving its increasing popularity among investors. The Łódź region boasts well-developed infrastructure and a highly skilled workforce from local academic centers. Global companies across various sectors—including logistics, manufacturing, business services, and IT—are recognizing this potential and are increasingly choosing to invest in the region.
In the wake of this regional shift, Poland stands a chance of becoming one of the main beneficiaries, thanks to its status as one of the leading locations for near-shoring in Europe. In the context of these changes, Łódź is emerging as one of the most attractive locations in Poland for business relocation, offering a range of opportunities. Its advantageous geographical location, business-friendly environment with an expanded investment incentive mechanism, advanced transport infrastructure, well-developed office, and warehouse market, availability of attractive investment areas for manufacturing, large talent pool, and sustainable development strategy are likely to play a key role in attracting new investors.
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