High-tech company interest in near-shoring grows as supply chain strategies shift: UPS survey

ATLANTA, Ga.–High-tech companies are making strategic shifts to their supply chain models to enable greater customer-centricity, meet changing consumer demand patterns and capture new growth opportunities. Findings come from the 4th annual global UPS Change in the (Supply) Chain survey, conducted by IDC Manufacturing Insights.

Interest in near-shoring has more than tripled since 2010, the survey said. Globally, 27% of high-tech logistics executives are embracing near-shoring as one strategy to improve their customer service. When asked globally about the top drivers for near-shoring, 77% said they wanted to improve service levels by bringing production closer to demand and almost 55% cited improving control over quality and intellectual property.

Other high-tech executives, including 82% in the US, will continue to use their existing supply chain strategies. Survey respondents cited the cost benefits of low-cost manufacturing countries and the location of key suppliers as the top reasons for not considering near-shoring.

Survey findings also show that 41% of high-tech executives expect to see exports grow faster over the next two years compared to 2013. Another 39% expect to see exports to grow at the same level over the next two years.