Nearshoring is no longer an emerging trend: it is a core strategy for multinationals reconfiguring their supply chains.
This involves relocating part of the production or services to a country near the main market, instead of operating in more distant regions like Asia. The objectives are:
• To reduce logistics costs and delivery times.
• To decrease supply chain risks.
• To improve communication due to time zone proximity.
• To take advantage of trade agreements and tax benefits.
For example, a US company that previously manufactured in China can move its production to Mexico or the Dominican Republic, shortening lead times and reducing risks.
Over the past three years, nearshoring has accelerated in Latin America, with countries like Mexico, Colombia, Costa Rica, Panama, and the Dominican Republic vying to attract these investments. The question is: what is a multinational company really looking for when deciding where to locate?
1. A strategic and functional location
• Sea transit time to the US East Coast: 3–5 days (vs. 25–30 days from Asia).
• Air connectivity to more than 80 international destinations.
• World-class ports on both coasts: DP World Caucedo, Haina, Puerto Plata, and Manzanillo (expanding).
Being close is not enough: having top-notch logistics infrastructure and efficient access is key.
2. Competitive Free Trade Zone Regime
• Tax and customs exemptions (Law 8-90).
• Legal stability recognized in the region.
• In 2024, free trade zones generated US$8.4 billion in exports (67% of the national total).
3. Young, bilingual, and specialized talent
• Workforce with a good level of English and technical skills.
• High adaptability to sectors such as BPO, medical manufacturing, textiles, and logistics.
• Competitive labor costs compared to the US and several Central American countries.
4. Infrastructure and assets ready for operation
. Time is money. It's not enough to have space: it must be ready, meet international standards, and adapt quickly.
• Expansion of the Port of Manzanillo and improvements in Caucedo.
• Punta Cana Free Trade Zone: the Caribbean's first air, sea, and land logistics park.
• Industrial parks in Santo Domingo, Santiago, and other strategic provinces.
5. Recent Cases That Prove It (2024–2025)
• Next Level Apparel + Grupo M: nearshore textile production focused on speed, transparency, and sustainability.
• Jacagua Cigar Factory, FL Technics, Gatekeeper Observation: new operations in free trade zones in Santo Domingo, Santiago, and La Altagracia, with more than 1,160 jobs and USD 27.5 million in investment.
The official voice: Johannes Kellner, Deputy Minister of Industry and Trade
“In today’s competitive global economy, proximity to the market is no longer a differentiator: it’s the starting point. Companies transforming their supply chains don’t just want to be close; they want to be faster, more efficient, and better. Proximity alone isn’t enough: we must be efficient, agile, and reliable. That’s the formula for long-term success, and we’re already proving it.”
Kellner cites examples such as Hayco, Medtronic, Convatec, and Boombah, companies that have embraced regional development by combining international production and distribution.
Challenges to Consolidating Leadership:
1. Vessels ready to operate: Demand is plug & play, with lead times of less than 6 months.
2. Streamlined permits: Land use, environmental, and customs approvals must be expedited.
3. Regional competition: Neighboring countries are investing aggressively in promotion and infrastructure.
4. Internal logistics: Congestion and poor road conditions affect delivery times.
5. Lack of standardized data: Technical and financial information in English is still scarce.
Recommendations for developers and brokers
: • Design warehouses and parks according to international standards (height, strength, certifications).
• Offer flexible leasing and build-to-suit models.
• Partnerships with ProDominicana, CNZFE, and MICM to expedite permitting processes.
• Bilingual, investor-ready information packages.
• Maintain a consistent presence at international trade shows and in specialized media.
• Develop multimodal logistics hubs.
Economic advantages for Dominicans
: 1. Quality jobs: direct and indirect, better paid.
2. More foreign exchange and increased domestic consumption.
3. Regional development: less migration to the capital.
4. Technology transfer and job training.
5. Improved infrastructure that benefits communities.
6. Greater international competitiveness in multiple sectors.
Conclusion
Nearshoring is a historic opportunity, but the window won't be open forever. The Dominican Republic has the location, the talent, the incentives, and the infrastructure… and now it must demonstrate flawless execution.
For decision-makers—CEOs, COOs, CFOs—the key is not just being close, but delivering efficiency, speed, and quality. And in that, the Dominican Republic is ready to lead.
