Nearshoring readiness: a readiness dashboard to navigate global value chain relocation

Purpose This research proposes a readiness dashboard (RD) to evaluate national competitiveness in the shifting landscape of global value chains. It analyzes the transition from cost-centric offshoring to security-focused nearshoring and friendshoring, driven by post-pandemic geopolitical tensions. Design/methodology/approach The RD is a multidimensional framework that operationalizes national competitiveness with 32 variables structured across four pillars: institutions, infrastructure, integration and inputs, providing comparable metrics for 124 countries. Findings This study concludes that while infrastructure is necessary, institutional quality and deep trade integration are the primary factors in capturing trade diverted from the USA market. The inputs dimension remains the biggest challenge, while integration is a relative strength for lower-income countries. Focusing on the Americas, a region of one billion people with a gross domestic product of USD 34 trillion, the study highlights how strategic policy alignment can help Latin American countries capture a significant share of trade relocated from the US. Originality/value The research provides a strategic tool for policymakers to identify structural voids and design targeted policies that mitigate geopolitical risks while fostering long-term investment to orient business-people's investment destinations.