Understanding Next-Shoring and How It Can Help Your Company

You’ve surely heard of “offshoring” work, and maybe even “reshoring” as developing economies increase the average wage. But have you heard of “next-shoring”? This innovative thought process is designed to respond to a fast-evolving market heavily impacted by the Internet of Things, a new wave of robotics and other technologies that are offering interesting challenges and solutions within the manufacturing industry. We at Sentech Services know that our clients are interested to know what hiring trends and industry developments are going to influence business, so we break down the basics of next shoring and delve into how this fresh perspective can be a benefit to your company.


Determining whether next-shoring is a philosophy worth considering for the benefit of your company depends in large part on simple economics. Specifically supply and demand. As demand for your product increases, so too must your supply, particularly on a regional level. If investing in connected technologies to increase production to meet local demand makes sense, then you should seriously consider how the Internet of Things and automation might increase your output. Also worth considering are increases in energy cost (or decreases as the case may be) and labor impacts. Each decision has multiple economic tie-ins that can either reduce or increase your bottom line. If the return on investment makes sense, then you are a likely candidate for next-shoring your processes.


Also consider how, and specifically what, technologies would result in improvements on your processes. Industrial robotics has experienced an impressive boom since 2008, with machinery that can perform tasks that vary from standard factory duties to highly detailed and high-risk operations. Having robots work side by side with human staff may seem like the stuff of science fiction, but the industry is increasingly embracing this futuristic work environment.

Also consider how investing in futuristic technology will shift the demands on your workforce. For one thing, there will likely be less need for industrial workers who are replaced by high-functioning machinery with the ability to accomplish assembly and production tasks. But on the other hand, you will need to have high-priced engineers and programmers on your staff to manage and maintain the machinery you have invested in. Both can increase your front end costs when transitioning to a next-shoring strategy, but they can offer vast improvements in automation and production as an end result.

Innovative Strategies

Considering how quickly the manufacturing industry has changed within the past twenty years, it’s a good idea to at least think how these innovative technologies and processes can improve your company’s daily work. Change can be difficult, but investing in proven strategies and upgrades will help you keep up with a competitive market. Rethinking how your company invests its resources, both in the factories and at the highest levels of corporate leadership, can help your business maintain an edge in a fast-paced and increasingly technological setting.

Working with Sentech gives you access to talented, prescreened, ready-to-work skilled tradesmen and light industrial workers. Contact us today to work with one of the top industrial recruiters in Detroit, Port Huron and Fort Wayne.


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