How much would you pay for peace of mind?

That’s the question many apparel brands are asking internally as geopolitical tension, trade disputes, pandemics and regional conflicts continuously chip away at their supply chain’s foundation.

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Many are considering “friendshoring” as a solution. While nearshoring primarily focuses on geography—reducing transit times, lowering transportation complexity, and placing production closer to the end market—friendshoring is rooted in trust, alignment, and long-term resilience.

It is a strategic approach in which brands build supply chains within countries that share similar regulatory standards, values, and commitments to quality, compliance, sustainability, and ethical business practices. Rather than being driven by lower labor or production costs, friendshoring is designed to provide stability in an increasingly uncertain global environment.

“It’s about balance and diversification,” said Sherin Hosni, Apparel Export Council of Egypt executive director.

Last week at Sourcing by Informa in Las Vegas, an expert panel explored how friendshoring can strengthen supply chain resilience and offered insights for brands looking to diversify their sourcing beyond their traditional manufacturing hubs.

Chris Walker, founder of Vietnam Factory Tours, compared friendshoring to “not having all your eggs in one basket.” Rather than concentrating production in a single country, brands are spreading their sourcing across multiple politically and economically aligned markets to reduce exposure to tariffs, trade disputes and other regulatory shifts.

He noted that interest in friendshoring accelerated during President Trump’s first term, when escalating trade tensions prompted many companies to reassess their reliance on China. As brands worked to decentralize their sourcing footprint, Vietnam quickly emerged as one of the first alternative destinations, alongside countries such as Egypt and Madagascar.

Friendshoring requires brands to look beyond the borders of their typical sourcing map, and more importantly, learn about their infrastructure.

Adopting a friendshoring strategy requires decision-makers to take a disciplined, data-driven approach—carefully evaluating the advantages and trade-offs of each production country. Rather than reacting to short-term pressures, Pedro Macedo Leão, Portuguese Trade and Investment Agency director, trade and investment commissioner, said companies must conduct thorough research into factors such as political stability, regulatory alignment, infrastructure, labor capabilities, sustainability standards and long-term economic outlook.

No single country is a one-stop-shop, Sebastian Echavarría, ProColombia USA senior textiles and apparel representative, warns. Like nearshoring, each friendshoring destination has its advantages and disadvantages.

Echavarría noted that Colombia excels in categories such as sportswear, swimwear, intimates and uniforms. Its proximity to the U.S. is a major advantage and suppliers are eager to work with smaller brands on unique products. “The more complex the product is, the more competitive we are,” he said, adding that 80 percent of Colombia’s manufacturing companies are producing for smaller businesses. Just two or three factories are producing for big brands.

However, he cautioned that it is not yet a go-to hub for footwear, which demands investment in specialized technology, nor for high-volume basics or children’s wear, which require strict compliance with safety and regulatory standards. Colombia also faces a workforce challenge, as many young people are pursuing careers in other industries. Still, Echavarría noted that social programs are underway to promote the sector, provide training, and help rebuild a skilled workforce.

Though Vietnam’s government is pro-business and Vietnamese factories easy to work with and “produce good products at fair prices,” Walker said brands may have difficulty getting into one. “The popularity of Vietnam has saturated the market in terms of capacity,” he said.

Portugal’s centuries-old textile history in textiles appeals to brands seeking high quality craftsmanship and a “Made in Europe” label. Leão noted that roughly 90 percent of the country’s producers are located within 30 miles of one another, creating a tightly knit ecosystem of mostly family-owned companies that encourages collaboration. While several universities and technical centers are also dedicated to advancing and automating textile and garment output, the sector is still on a digitizing journey.

Egypt’s garment manufacturing sector is undergoing a renaissance. In 2025, Hosni said the region attracted significant investments from groups in Turkey, Russia and China. Key infrastructure projects are also underway including renovating ports, airports and railroads. Tariffs are low compared to other countries and capacity is growing. However, Egypt is still in the process of advancing its sustainability practices and strengthening compliance frameworks to meet international standards.

Exploring new countries is a major investment for most brands.

“If you’ve been producing in China for the past 20 years and now want to explore Egypt or South America, that exploration comes at a cost,” Walker explained. “It starts with the basics—flights, hotels, and the opportunity cost of sending your team overseas and away from the office.” From there, the investment deepens as companies meet and vet factories, negotiate costs, timelines and minimums before even comparing FOB costs.

Additionally, friendshoring is not guaranteed to solve all problems. The rapid and often unpredictable cadence of geopolitical flare-ups means that even the strongest friendshoring partnerships will inevitably be tested. However, Leão emphasized that a strong partner will demonstrate immediate transparency and technical adaptability to solve problems.

Whatever the label, the future belongs to supply chains that are agile and continuously evolving. China should not be counted out, but the sourcing landscape is widening, with more players earning a seat at the table.

“Change is always a permanent factor,” Walker said. “I believe that China will continue to be the number one source. Brands will just diversify. They’ll continue producing China, but they’ll also consider all options on the table, and then again, let the number do the talking.”