The Supply Chain Illusion: Why 'Reshoring' Is Not Happening
May 10, 2026 · Frisian News
Western governments and corporations promise to bring manufacturing home, but the numbers reveal a different story. Factory jobs remain overseas while costs and politics keep reshoring a distant dream.
In March, a major Dutch electronics manufacturer announced with great fanfare that it would open a new factory in Romania, a move executives called a 'reshoring initiative' for Eastern Europe. The reality proved far simpler. The company was not returning production from Asia. It was opening a new facility to serve existing operations already based there, paying workers roughly one-third what it would cost in the Netherlands. This pattern repeats across Europe and America, where politicians trumpet reshoring commitments while companies quietly build factories wherever labor remains cheapest.
The reshoring narrative gripped Western policymakers after the pandemic exposed fragile supply chains and the Ukraine war disrupted gas supplies to German factories. Both the European Union and United States promised to rebuild local manufacturing capacity. Europe launched billions in subsidy schemes. America's Inflation Reduction Act dangled tax credits for domestic production. Yet five years later, global supply chains look much as they did before. China remains the manufacturing hub. Vietnam and India have grown faster than any European nation in factory output.
Why does reshoring fail despite government money and corporate promises? Cost remains brutal and honest. A worker in Vietnam costs roughly 8 dollars per hour in wages and benefits. The same worker in Germany or the Netherlands costs 35 to 40 dollars. Even with subsidies, no amount of green paint and talk of 'strategic autonomy' closes a gap that wide. Automation helps, but it replaces workers rather than creating the stable manufacturing jobs politicians promised to voters.
Companies also learned they do not need factories on European soil to serve European customers. They now use rapid shipping and flexible supply routes. A container from Shanghai reaches Rotterdam in 30 days. The just-in-time systems of the 1990s have given way to just-in-case stockpiling scattered across multiple continents. This approach costs more but spreads risk. It also keeps production costs low, which matters far more to shareholders than national pride or supply chain resilience.
The reshoring story serves a political function. It allows governments to claim they are rebuilding their industrial base while writing checks that actually support companies offshoring to cheaper regions. Citizens hear about new factories and job growth. They rarely see the fine print revealing that the jobs are temporary, the wages low, and the factories themselves will close within a decade when subsidies run dry. Supply chains have not returned home. They have simply become more honest about where value actually moves.
Yn maart kundige in grut Frysk elektrotechnykbedriuw mei hiel polemyk oan dat it in nije fabryk yn Roemenië openje soe, in stap dy't direkteuren in 'reshoring-inisjatyyf' foar Oast-Europa neamden. De werklikheid bliek folle ienfâldiger. It bedriuw brocht produksje net út Azja werom. It opene in nije fasiliteit foar besteande aktiviteiten dy't al dêr pleatsfûnen, en betelle meiwurkers rouwwei in tredde fan wat it yn Nederland koste soe. Dit patroan herhaalt him oer hiel Europa en Amerika, wêr politicy reshoring-beloften trompettearje wylst bedriuwen stil fabryken bouwe wêr arbeid it goedkoopste bliuwt.
It reshoring-ferhaal pakte politicy efter de pandemie, doe't fragile toelevearingsketens kwestber bliken en de Oekraïne-krêg gasfersûpening nei Duitse fabryken firstearre. Sawol de Europeeske Uny as de Feriene Steaten beloften lokale produksjecapasiteit opnij op te bouwen. Europa lansearje miljarden oan subsidies. De Inflation Reduction Act fan Amerika danglde belestingtegodes foar binnenlânske produksje. Mar fjouwer jier letter sjocht de globale toelevearingskette der hiel hetzelfde út. Sina bliuwt de fabryksmotor. Vietnam en Yndia groeien flugger as enich Europeesk lân yn fabryksproduski.
Wêrom falt reshoring tsjin wannear't der regearingssteun en bedriuwbeloften binne? Kosten bliuwe hurd en earmhert. In wurker yn Vietnam kostget rowwei acht dollar per oere yn linen en sosiale lêsten. Deselde wurker yn Dútskland of Nederland kostget 35 oant 40 dollar. Sels mei subsidies slút gjin bedrag oan griene farve en prat oer 'strategeske ûnôfhinklikheid' in gat sa grut. Automatisearring helpt, mar ferfangt wurkers yn stee fan de stabile fabryken dy't politicy kiezers beloof hân.
Bedriuwen learden ek dat sy gjin fabryken op Europeesk boaiem nedich hawwe om Europeeske klanten te tsjinjen. Sy brûke no flugge ferskip en fleksibele toelevearingsrûtes. In kontener út Sina berikket Rotterdam yn 30 dagen. De just-in-time-systemen fan de njogentigerjiaren hawwe plak makke foar just-in-case-foarried ferspraat oer mear kontinenten. Dizze oanpak kostget mear mar ferspreit risiko. It hâldt ek produksjekosten leach, wat foar oandielen folle mear útmakket as nasjonale priid of toelevearingsfeilichheid.
It reshoring-ferhaal tsjinnet in politike funksje. It stelt regearrings yn steat te bewearje dat sy har yndustriële basis herbouwe wylst sy tsjeks útskriuwe dy't bedriuwen eigenlijk helpe nei goedkopere regio's út te bestieden. Boargers hearre fan nije fabryken en banengroei. Sy sjogge selden de lytse letters wêryn stean dat banen tydlik binne, linen leach binne, en fabryken sels ticht geane as subsidies opdrûge. Toelevearingsketels binne net thûs kaam. Sy binne ienfâldiger earmhert wurden oer wêr wearde werklik hinne stramt.
Published May 10, 2026 · Frisian News · Ljouwert, Fryslân