In the German manufacturing industry, there is actually one backshoring company on every three offshoring companies. The most important reasons for backshoring are losses in flexibility and delivery capability as well as quality problems. Results of a large firm-level survey in the German manufacturing industry show a clear, positive correlation between the use of technologies for the digital integration of production processes (Industry 4.0) and the backshoring propensity of German companies. This paves the way for local value chains in close proximity to important customers.
