What does "onshoring" typically refer to in a business context?

Onshoring refers to the practice of moving jobs and production processes back to the company's home country from overseas locations. This trend often arises from various economic considerations, including rising labor costs abroad, the desire for better quality control, or the aim to align business practices with local regulations. By bringing jobs back home, companies can enhance local employment opportunities and potentially reduce shipping costs and lead times involved in international operations.

This choice clearly encapsulates the primary essence of onshoring, distinguishing it from other business strategies, such as offshoring, which involves relocating business functions to another country, or outsourcing, which includes contracting out tasks to third-party vendors, regardless of their location. Each of these practices has its own strategic implications and aligns with different business goals, but onshoring specifically emphasizes reshoring jobs to the domestic market.