Across Europe, manufacturers are rethinking how and where they produce. According to The British Standards Institution (BSI), businesses are now placing “a premium on agility,” with nearshoring and regionalisation becoming key responses to geopolitical instability rather than purely cost-saving decisions. Supply chain resilience has moved from a procurement issue to a boardroom priority as companies look to reduce dependence on distant suppliers and improve production visibility.

For years, manufacturers built global supply chains around one principle — lowest cost wins. Production moved further overseas, particularly across Asia, where labour costs were lower. According to research published in the OECD, "cheaper labour cost" are one of the main drivers for firms moving production overseas. But that model is no longer delivering the certainty manufacturers need. Geopolitical instability, shipping disruption, rising freight costs and growing pressure for faster delivery have exposed the risks of long, fragile supply chains. Here, Hakan Aydogdu, CEO of CNC automation specialist Tezmaksan, explores why nearshoring is becoming a strategic necessity.

Across Europe, manufacturers are rethinking how and where they produce. According to The British Standards Institution (BSI), businesses are now placing "a premium on agility," with nearshoring and regionalisation becoming key responses to geopolitical instability rather than purely cost-saving decisions. Supply chain resilience has moved from a procurement issue to a boardroom priority as companies look to reduce dependence on distant suppliers and improve production visibility.

This applies to sectors like aerospace, defence, automotive and precision engineering, where lead times, traceability and supplier reliability matter more than simply finding the lowest labour cost. European defence spending is rising sharply, while aerospace demand continues to grow, creating direct pressure on machining capacity and component availability. These industries can't afford long delays caused by overseas shipping disruption or unstable supply routes.

Recent data shows this shift is already happening. A report from Capgemini showed that the share of companies investing in nearshoring or combined reshoring and nearshoring increased from 42 per cent in 2024 to 56 per cent in 2025. Nearshoring is no longer a future strategy, it's becoming standard operating practice.

But moving production closer does not automatically solve the problem. Manufacturing in Europe comes with higher labour costs, tighter skills shortages and greater pressure on productivity. Without efficiency, nearshoring can simply become more expensive than offshoring.

Where automation becomes essential
Nearshoring only works if local production can remain globally competitive. Manufacturers need systems that reduce labour dependency, increase machine utilisation and allow production to continue beyond traditional shift patterns. Robotic loading systems, lights-out machining, manufacturing execution system (MES) traceability and simplified programming are no longer optional upgrades, they are what make regional production financially viable.

The challenge is especially clear for SMEs. Large manufacturers often have dedicated automation teams and the resources to invest quickly, whereas smaller suppliers don't.

Despite that, they're often the most important link in the supply chain. Many SMEs understand the need for digitalisation, but adoption remains slow. While most SMEs recognise the need to digitalise, far fewer have taken steps toward advanced automation and industry 4.0 adoption. The issue is rarely willingness, it's complexity.

Too often, automation still feels like a large-scale transformation project rather than a practical production tool. Systems that require specialist programmers, major infrastructure changes or long implementation timelines create hesitation rather than progress. Manufacturers need automation that fits into the existing shop floor, not solutions that disrupt it.

This is why simplifying automation matters as much as automation itself. Technologies like CNC automation systems, offline programming software and modular CNC automation cells help remove friction from daily production rather than adding another technical layer to manage. The goal is not just more robots, but automation that operators can actually use.

Countries like Türkiye are becoming increasingly important in this shift, not because of geography alone, but because proximity must be matched by productivity. Europe's future supply chains will depend on partners that can deliver speed, flexibility and stable production, not just lower cost.

The question is no longer whether manufacturers should bring production closer. That decision is already being made. The real question is whether they can make that production efficient enough to compete.

To learn more about how modular CNC automation can support more efficient production, visit Tezmaksan Robot Technologies' website.