In 2026, reshoring in Europe is no longer a niche topic. Industrial companies are now taking a close look at which parts, suppliers, and value chain steps should be moved closer to the European market—not just for cost reasons, but to improve supply chain resilience, speed, compliance, and predictability. That is exactly why terms like nearshoring, friend-shoring, and rightshoring are becoming much more relevant. Current developments are supported in part by the EIB Investment Survey 2025 and the Capgemini Reindustrialisation Report 2025.
- What reshoring in Europe really means today
- Why reshoring, nearshoring, and rightshoring are gaining momentum in 2025/26
- Reshoring by the numbers: the key market signals
- TCO over unit price: how to evaluate reshoring properly
- Reshoring strategies that work in practice
- Which industries in Europe are regionalising most aggressively
- FAQ on reshoring in Europe
When companies talk about reshoring in Europe today, they usually do not mean bringing entire production setups back home. Much more often, it is about restructuring sourcing in a targeted way: securing critical parts regionally, building alternatives for vulnerable sources, and using flexible manufacturing models for low-volume or volatile demand. The key question is no longer “What can we bring back completely?” but rather: Which parts do we need to source closer to home, with more transparency and greater resilience? That is why reshoring in Europe today is closely tied to diversification, risk management, and flexible manufacturing models.
What reshoring in Europe really means today
Reshoring refers to moving production back to a company’s home country. In reality, though, that is only part of the picture. For many companies, reshoring in Europe is closely linked to nearshoring in Europe: production and sourcing are shifted to geographically close regions such as Poland, the Czech Republic, Romania, Portugal, or Spain.
Then there is rightshoring—a term that feels especially relevant in 2025/26. It describes the strategic mix of local, regional, and global manufacturing that makes the most sense. Some production stays offshore, critical components are regionalised, and highly volatile demand is handled through flexible on-demand models. For many industrial companies, that approach is far more realistic today than a full-scale relocation.
In 2026, reshoring is rarely a radical “bring everything back home” move. What usually works best is the targeted regionalisation of critical parts—supported by nearshoring, dual sourcing, and on-demand manufacturing.
Why reshoring, nearshoring, and rightshoring are gaining momentum in 2025/26
1. Volatile transport routes are making long supply chains more expensive and less reliable
Recent years have shown that global transport costs and transit times are no longer stable planning assumptions. The UNCTAD Review of Maritime Transport 2025 highlights continued disruption in the Red Sea, rerouting via the Cape of Good Hope, longer transit times, and fluctuating freight rates. For procurement and supply chain teams, that matters because a supposedly attractive unit price can quickly turn into an expensive risk scenario—one of the core arguments for reshoring in Europe.
2. Strategic dependencies are becoming visible through regulation
European industrial policy is increasingly focused on resilient and strategically manageable supply chains. The European Chips Act, the Critical Raw Materials Act, and the Net-Zero Industry Act clearly show which value chains the EU sees as relevant to security and competitiveness. That is reshaping investment and sourcing decisions: price is no longer the only factor—origin, availability, processing capacity, and regulatory resilience matter more than ever.
3. CBAM and decarbonisation are changing the cost equation
With the Carbon Border Adjustment Mechanism (CBAM) entering its definitive phase from 2026, carbon-intensive imports will face significantly more pressure. For companies, that means total cost of ownership comparisons between offshore sourcing and Europe must now account much more consistently for carbon-related costs, reporting obligations, and downstream regulatory impact. That, too, is making reshoring in Europe more relevant across many categories.
4. European production is becoming more digitally flexible
Today, reshoring is far less likely to fail because a company cannot immediately build local production capacity of its own. Digital manufacturing platforms, qualified partner networks, and on-demand models make it possible to produce parts in Europe without building a factory from scratch. That significantly lowers the barrier to entry for selective reshoring—especially in spare parts, low-volume production, and complex custom components. The EU’s Clean Industrial Deal also underlines how closely competitiveness and decarbonisation are now being considered together.
Are you evaluating reshoring or nearshoring for your parts?
We help identify which components make economic sense for on-demand manufacturing in Europe—including a TCO and risk perspective.Reshoring by the numbers: the key market signals
If you want to understand the current shift, it is not enough to look at individual factory relocations. The more interesting story lies in the patterns behind them: companies are diversifying more, prioritising supply security, and in some cases accepting higher costs for strategic parts if that reduces dependencies and improves responsiveness. That trend is reflected in both the EIB Investment Survey 2025 and the Capgemini Report 2025—and it is central to the reshoring debate in Europe.
| Signal | What it means | Why it matters for companies |
|---|---|---|
| EU firms are diversifying instead of fully deglobalising | Imports are not being cut across the board, but secured across multiple countries | Dual sourcing and rightshoring matter more than full reshoring |
| Friend-shoring is gaining real momentum | Political stability and trade security are becoming genuine location factors | Supplier selection is becoming more geopolitical and regulatory |
| Transport costs remain volatile | Long sea routes and global disruption have a greater impact on TCO and service levels | Regional manufacturing becomes more attractive for critical parts |
| CBAM is no longer a future issue—it is here | Carbon-intensive imports have to be reassessed | Procurement and sustainability teams need to work more closely together |
| Digital manufacturing models are lowering the barrier to entry | European production is possible even without owning machines | On-demand manufacturing becomes a practical reshoring tool |
The most interesting development in 2026 is not “bring everything back to Europe,” but the shift away from linear low-cost supply chains toward resilient, regionally secured sourcing models.
TCO over unit price: how to evaluate reshoring properly
Many offshore comparisons are too narrow. They compare a low unit price from Asia only with direct manufacturing costs in Europe. That is not enough for a real TCO analysis in a reshoring context. What matters is the total value of a supply chain over its actual use in operations. Especially when it comes to reshoring in Europe, this broader perspective often determines whether a business case becomes visible—or stays hidden.
| Cost factor | Offshore sourcing | Europe / Nearshoring / On-demand | Why it matters |
|---|---|---|---|
| Unit price | Often lower | Often higher | The direct price says little about total value |
| Transport volatility | High | Much lower | Long routes increase risk and tie up capital |
| Safety stock | Higher | Lower | Longer lead times drive inventory and working capital |
| Quality and claims costs | Harder to control | More manageable | The true cost of defects is often underestimated in procurement |
| Compliance and documentation | Higher coordination effort | Easier to integrate | Especially relevant in regulated industries |
| Carbon / regulatory costs | Increasing | Potentially lower | CBAM and decarbonisation are changing sourcing models |
| Supply failure risk | Higher | Can be reduced | Downtime costs often outweigh any purchasing savings |
For spare parts, special components, and products with high part variety, the economics often shift toward Europe faster than traditional procurement logic would suggest. Wherever demand is irregular, safety stock is expensive, or a supply failure would be especially painful, on-demand manufacturing in Europe can be more economical than a nominally cheaper offshore price.
- Transport and lead-time risk: factor in not just standard freight, but also volatility and delays
- Safety stock: include inventory cost, tied-up capital, and obsolescence
- Quality costs: assess scrap, rework, complaints, and coordination effort realistically
- Regulation: take CBAM, documentation requirements, material traceability, and auditability into account
- Downtime costs: what does a production stop cost if a critical part is missing?
- Flexibility: how quickly can demand changes or engineering updates be implemented?
Reshoring strategies that work in practice
Selective reshoring of critical components
Not every part needs to be brought back to Europe. In most cases, the smartest starting point is with components whose failure would cause high costs, whose lead times are unpredictable, or whose quality and documentation requirements are especially demanding. That makes reshoring in Europe operationally manageable without forcing an immediate redesign of the entire supply chain.
Dual sourcing with a regional backup
A global supplier remains in place for volume or price reasons, while a European partner is added as a second source. That increases supply chain resilience without requiring a full location shift from day one.
On-demand manufacturing as a fast entry point
Companies can test reshoring without building capacity themselves. Digital platforms and qualified manufacturing partners make production in Europe possible on demand—especially relevant for spare parts, low-volume runs, variants, and MRO applications.
Rightshoring instead of black-and-white decisions
Today, the best answer is rarely purely local or purely global. Successful companies combine offshore, nearshore, and local manufacturing in a way that balances risk, cost, and speed for each component.
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We analyse your parts list and show which items are suitable for a European on-demand setup, dual sourcing, or nearshoring.Which industries in Europe are regionalising most aggressively
Reshoring in Europe is especially relevant in industries where supply chains are driven not just by price, but also by safety, quality, or documentation requirements. In these sectors, the financial damage caused by a supply failure is often greater than the perceived offshore advantage.
| Industry | Main driver | Typical reshoring candidates | Best-fit approach |
|---|---|---|---|
| Automotive & electronics | Semiconductors, quality, geopolitical risk | critical precision and electronic components | Dual sourcing + regional backup |
| Mechanical engineering | Spare parts availability, part variety, IP protection | spare parts, special parts, low-volume production | On-demand manufacturing in Europe |
| MedTech & pharma | Documentation, traceability, qualified supply chains | metal and plastic parts, fixtures, equipment | Qualified European partners |
| Rail & transport | MRO speed, ageing assets, low volumes | spare parts, interior and functional components | On-demand + regional backup |
| Aerospace & defence | Sovereignty, certification, ITAR-like requirements | structurally critical and documentation-heavy parts | Certified European capacity |
| Clean tech & energy-intensive industries | Regulation, raw materials, EU industrial policy | strategic components and intermediate products | Nearshoring + rightshoring |
Conclusion: in 2026, reshoring in Europe is above all a question of prioritisation
Companies do not need to bring everything back to Europe. But they do need to make much more precise decisions about which parts are critical, which dependencies have become too risky, and where speed, quality, or regulation matter more than a low purchase price. That is where the economically sensible form of reshoring in Europe begins.
The biggest levers are rarely found in mass-produced items, but in critical spare parts, specialised components, volatile low-volume production, and parts with demanding quality or documentation requirements. Companies that prioritise these correctly and evaluate them based on total cost of ownership rather than unit price can build a more resilient—and often more economical—supply chain through reshoring in Europe.
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Identify your top reshoring candidates—we support you with analysis, technology selection, and the right European manufacturing setup.FAQ on reshoring in Europe
What is the difference between reshoring, nearshoring, and rightshoring?
Reshoring means moving production back to a company’s home country. Nearshoring means relocating production to geographically close countries. Rightshoring describes the strategically right mix of local, regional, and global manufacturing—depending on risk, cost, speed, and regulatory requirements.
Why is reshoring in Europe becoming more important in 2026?
Because transport routes have become more volatile, regulation and decarbonisation are having a stronger impact on procurement, and companies are working more deliberately to reduce critical dependencies. The UNCTAD Review of Maritime Transport 2025, the EIB Investment Survey 2025, and the EU’s CBAM guidance all support this shift. That is why reshoring in Europe continues to gain importance in 2026.
How do you calculate a realistic TCO comparison?
A robust comparison looks beyond unit price and includes transport volatility, safety stock, complaints, quality costs, currency risk, documentation and compliance effort, as well as the cost of supply failure. Only then does it become clear whether offshore sourcing is truly the cheaper option.
Which European countries are typical nearshoring locations?
For German industrial companies, Poland, the Czech Republic, Slovakia, Romania, Portugal, and Spain are among the most relevant nearshoring locations. Which region makes sense, however, depends heavily on the technology, required quality level, material requirements, and logistics setup.
What does CBAM change for industrial procurement?
CBAM increases the relevance of carbon-intensive imports in procurement calculations. This is especially important for iron and steel, aluminium, cement, fertilisers, electricity, and hydrogen, where companies will need to account much more systematically for emissions and regulatory costs going forward.
Which parts are especially well suited to on-demand manufacturing?
Above all, spare parts, low-volume production runs, variants with irregular demand, special components, and parts with long offshore lead times. In these cases, on-demand manufacturing in Europe can significantly improve inventory costs, sourcing risk, and response times.
