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PurposeThe paper aims to explore the influence of the industry technology intensity on the drivers of manufacturing backshoring.Design/methodology/approachAn analysis of backshoring factors in recent cases of backshoring in the European manufacturing industry based on original qualitative and quantitative information collected from different databases. This analysis was performed using different econometric models applied to samples of firms classified by technology intensity of industries.FindingsDrivers of backshoring are conditioned by the technology intensity of the industries. The models that analyse firms classified by technology intensity of the industries have a good explanatory capacity with few key factors. In industries with low-technology intensity, backshoring is a cost-oriented strategy and the drivers are linked to internal process optimisation and external factors related to labour and logistics costs in the host location. In industries with high-technology intensity, backshoring is mainly an innovation-oriented strategy and the key drivers are those related to the internal innovation capacity for improvement of the technological level of manufacturing processes. The research also identifies the more suitable theoretical approaches for explaining backshoring drivers in each type of industry according to its technology intensity.Originality/valueThis research analyses the backshoring drivers by means of models applied to firms classified by the technology intensity of industries. It also reinforces the dynamic perspective of time to analyse backshoring as a reassessment of location decisions made after prior offshoring.

PurposeThe purpose of this paper is to illustrate how the introduction of new technologies can lead to reconsidering the division of the production process as well as the location of each stage, which may mean reshoring some of them.Design/methodology/approachThe research is based on the analysis of the consequences of new technologies developed and introduced in the market to be applied in the final stage of jeans manufacturing. The paper presents the relevance of this technology, based on an in-depth interview with the representatives of the firm as well as firm and press reports, specialised websites and so on. The information of the reshoring company has been confirmed by its press releases.FindingsThe results show that a new technology justifies the reconsideration of the stages in which the production process can be divided and, once this division is considered viable, the drivers for reshoring can become more/less important in the reshoring decision.Practical implicationsFirms that previously offshored should consider that new technological processes may lead them to slice their value chains differently, causing them to seek the optimal location for each of the stages.Originality/valueMost of the reshoring literature is based on a static framework where the production process is considered stable and the reasons for reshoring must reside in the change of relevant parameters (such as cost differentials, need to be more flexible, monitoring costs higher than expected, etc.). This paper reveals that changes in the production process, even in traditional sectors, may lead to reshoring/backshoring.

Purpose The purpose of this paper is to examine the relationship between contingency factors and reshoring drivers in the US textile and apparel industry. Design/methodology/approach Secondary data on the reshoring drivers and contingency factors for 140 US textile and apparel companies are analyzed using analysis of proportions. Findings The findings show that total annual revenue is significantly related to the reshoring driver of skilled workforce. No significant relationships are present between reshoring drivers and the region of the world reshored from not the region of the USA from which a company operates. There is a significant relationship between market segment and the reshoring driver of manufacturing process. The US production category (reshored, FDI, or kept from offshoring) exhibits a significant relationship with sustainability-related and cost-related reshoring drivers. Quality is a significant driver for reshoring from 2010 to 2016, although decreasing as a reported reason over that time period. Research limitations/implications Limitations include a focus on one industry, the lack of information to investigate the differences between companies making captive or outsourced reshoring decisions, and the use of companies who publicly announced reshoring. Practical implications This study outlines the relationships between contingency factors and reshoring drivers. The results provide companies with information about resources that will be demand (e.g. skilled workers) as well as policies and regulations that may be developed to address concerns such as sustainability. Originality/value This study adds to the limited number of studies on the relationships between contingency factors and reshoring drivers and contributes to the quantitative research on reshoring drivers.

PurposeThe purpose of this paper is to present recent empirical results concerning offshoring and backshoring of manufacturing from and to Sweden, to increase the understanding of manufacturing relocation in an international context. In particular, extent, geographies, type of production, drivers, and benefits of moving manufacturing in both directions are investigated.Design/methodology/approachThe study is based on survey data from 373 manufacturing plants. The same set of questions is used for both offshoring and backshoring between 2010 and 2015, which allows similarities and differences in decision-making and results between the two relocation directions to be identified.FindingsThere are many significant differences between offshoring and backshoring projects. Labour cost is the dominating factor in offshoring, as driver and benefit, while backshoring is related to many drivers and benefits, such as quality, lead-time, flexibility, access to skills and knowledge, access to technology, and proximity to R&D. This is also reflected in the type of production that is relocated; labour-intensive production is offshored and complex production is backshored.Research limitations/implicationsPlants that have both offshored and backshored think and act differently than plants that have only offshored or backshored, which is why it is important to distinguish between these plant types in the context of manufacturing relocations.Practical implicationsThe experience of Swedish manufacturing plants reported here can be used as a point of reference for internal manufacturing operations.Originality/valueThe survey design allows a unique comparison between offshoring and backshoring activity. Since Swedish firms in general have been quite active in rearranging their manufacturing footprint and have experience from movements in both directions, it is an appropriate geographical area to study in this context.