Today, we’ll be discussing the trend of companies transferring their operations to nearby countries, because of geopolitical reasons, or because of recent disruptions in the global supply chain, like the shipping container crisis, and problems posed by Covid. For example, companies are relocating to Mexico in order to be closer to the U.S. market.
Listen to this headline from the Natural Gas Intel website, published on February 2, 2023: “Mexican Nearshoring Opportunities Seen Spurring Energy Needs.”
“Nearshoring” describes this trend. Production plants are moving nearer to the United States.
Of course, the word “shore” refers to the land along the edge of a sea, lake, or other large body of water. But here, it really has the meaning of a border. “Nearshoring” is when the operations are close to your border.
The article also mentions how energy companies in Mexico are taking advantage of new opportunities to provide electricity to these new production plants and offices. The headline uses the word “spurring,”. When used in this context, “spurring” means creating new energy needs.
Finally, there’s an English idiom that relates to nearshoring: “hedging your bets.” This means taking precautions to protect yourself from risk. In this case, US companies are “hedging their bets” by moving key production facilities closer to home to ensure their supply lines.
- Hedging a bet.
See a related lesson on Friend-shoring.
Photo credit: Carlos Aranda in Unsplash