Rising transport and raw material prices are causing distant countries like China and Bangladesh to fall out of favour with Dutch retailers and brands. This is how Intratuin, Zeeman and Accel are now sourcing their production closer to home.
The FD writes. The newspaper cites Intratuin, which wants to be less dependent on Christmas items from China and is therefore moving much of its production to Europe. Accel is considering making bicycle parts in Portugal or Eastern Europe and Wibra and Zeeman reshore part of their production to Turkey.
The shift does not come out of the blue. Companies have been at this for some time, because of the long delivery times and pollution caused by those long distances. To this are now added high container prices and a shortage of raw materials. "As a result, more signals are green for reshoring," Ton Wilthagen, professor of labour market at Tilburg University and associated with collaborative organisation The Reshoring Connection, tells the FD. "Five years ago, only 10 to 14 per cent of companies were thinking about this. Meanwhile, interest in factories and suppliers closer to home has clearly increased."
Reshoring does create challenges. In Europe, they face higher staff costs and a shortage of suitable workers. Moreover, it takes a long time to build up a network of reliable suppliers. Fashion retail chains say they have long-term contracts with suppliers in Bangladesh, for example. Relocation of production is therefore out of the question for many of them for the time being.
