Friendshoring or Allyshoring is a concept derived from onshoring and

nearshoring Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...

but it goes beyond that by limiting

supply chain network A supply-chain network (SCN) is an evolution of the basic supply chain. Due to rapid technological advancement, organizations with a basic supply chain can develop this chain into a more complex structure involving a higher level of interdependence ...

s to allies and friendly countries. Allied countries are taking

geopolitics Geopolitics (from Greek γῆ ''gê'' "earth, land" and πολιτική ''politikḗ'' "politics") is the study of the effects of Earth's geography (human and physical) on politics and international relations. While geopolitics usually refers to ...

into account in their risk assessments more than ever before. For example, companies operating in

China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

have experienced substantial interruptions due to its Zero-COVID policy. In contrast, global supply chains have been thrown into disarray due to

Russia Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...

Invasion of ukraine The territory of present-day Ukraine has been Invasion, invaded or Military occupation, occupied a number of times throughout History of Ukraine, its history. List See also *List of invasions *List of wars involving Ukraine References

...

Origin

In June 2021, Elaine Dezenski and John C. Austin used the term "allyshoring" in a paper and an article written for the

Brookings Institution The Brookings Institution, often stylized as simply Brookings, is an American research group founded in 1916. Located on Think Tank Row in Washington, D.C., the organization conducts research and education in the social sciences, primarily in ec ...

and

Newsweek ''Newsweek'' is an American weekly online news magazine co-owned 50 percent each by Dev Pragad, its president and CEO, and Johnathan Davis (businessman), Johnathan Davis, who has no operational role at ''Newsweek''. Founded as a weekly print m ...

respectively. Also, they gave credit to

Bonnie Glick Bonnie Glick is an American diplomat and businesswoman who served as the Deputy Administrator of the United States Agency for International Development from 2019 to 2020. Nominated for the post by President Donald Trump in April 2018, she was conf ...

for introducing it for the first time. In the same month, the

White House The White House is the official residence and workplace of the president of the United States. It is located at 1600 Pennsylvania Avenue NW in Washington, D.C., and has been the residence of every U.S. president since John Adams in 1800. ...

released a report on building resilient supply chains, which included “ally and friendshoring.” Later in July 2022, the term was used by

United States Secretary of the Treasury The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...

Janet Yellen Janet Louise Yellen (born August 13, 1946) is an American economist serving as the 78th United States secretary of the treasury since January 26, 2021. She previously served as the 15th chair of the Federal Reserve from 2014 to 2018. Yellen is t ...

during a speech that she delivered at the

LG Corporation LG Corporation (or LG Group) (), formerly Lucky-Goldstar from 1983 to 1995 (Korean: ''Leokki Geumseong''; ), is a South Korean multinational conglomerate founded by Koo In-hwoi and managed by successive generations of his family. It is ...

's Science Park in

Seoul Seoul (; ; ), officially known as the Seoul Special City, is the capital and largest metropolis of South Korea.Before 1972, Seoul was the ''de jure'' capital of the Democratic People's Republic of Korea (North Korea) as stated iArticle 103 ...

References

Supply chain management {{Business-stub