This study investigates the evolution of the German manufacturing sector in response to recent global disruptions, such as COVID-19. Using a new multi-country input-output framework, we analyze whether reshoring (bringing production back to Germany) and nearshoring (relocating it to neighboring European countries) have contributed to a process of reindustrialization. Our results indicate a clear shift in manufacturing value chains, particularly in medium-high-tech sectors, toward domestic and regional production. These sectors have increased employment within Germany and the EU while reducing dependence on distant (non-EU) production, suggesting a growing preference for resilient and regionally integrated supply chains. Concomitantly, the integration of services, particularly knowledge-intensive business services, has reinforced this transformation by supporting innovation and operational efficiency, reflecting the ongoing transformation to a knowledge-based economy. This study provides new insights into the changing geography of manufacturing and highlights the importance of reshoring and nearshoring as strategic responses to global uncertainty.
Do reshoring and nearshoring drive reindustrialization? The case of Germany
D'Angelo S.;Di Berardino C.;
2025-01-01
Abstract
This study investigates the evolution of the German manufacturing sector in response to recent global disruptions, such as COVID-19. Using a new multi-country input-output framework, we analyze whether reshoring (bringing production back to Germany) and nearshoring (relocating it to neighboring European countries) have contributed to a process of reindustrialization. Our results indicate a clear shift in manufacturing value chains, particularly in medium-high-tech sectors, toward domestic and regional production. These sectors have increased employment within Germany and the EU while reducing dependence on distant (non-EU) production, suggesting a growing preference for resilient and regionally integrated supply chains. Concomitantly, the integration of services, particularly knowledge-intensive business services, has reinforced this transformation by supporting innovation and operational efficiency, reflecting the ongoing transformation to a knowledge-based economy. This study provides new insights into the changing geography of manufacturing and highlights the importance of reshoring and nearshoring as strategic responses to global uncertainty.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
