Why nearshoring is not a silver bullet for the sporting goods industry in 2023
Nearshoring has bumped right up the agenda for many US sporting brands as they look to navigate the issue of rising transport costs and shipping delays on the back of global pandemics and worker shortages. As the sportswear industry is likely to experience negative growth in 2023, a new report from McKinsey & Co explores whether nearshoring is the route to navigating this challenge.
Nearshoring makes sense, in theory at least. For example, the last few decades have seen the apparel sector rely predominantly on China and, more recently, the wider Asia region for its clothing production needs. But the last few years — covid-19, worker shortages, soaring shipping costs — have unveiled the risk embedded within that business model. So making the collection on home turf — onshoring — or at least close enough for a brand to have control over the supply chain — nearshoring — does make sense. Again, in theory.
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