The honest answer in 2026 is that physical proximity matters in maybe 10 percent of graphic design projects. The 10 percent: press-print proofs that need physical sign-off, in-person product photoshoots where the designer is also art-directing, large-format signage and environmental graphics where on-site measurement is required, and strategic brand workshops where being in the same room produces materially better thinking than a Zoom call. For these scenarios, a local designer is not a preference - it's a requirement.
For the other 90 percent of work - logos, brand systems, marketing collateral, social assets, packaging concepts, web visuals, presentation decks, type systems, illustration commissions - proximity is irrelevant once you've cleared two screens. Screen one: does the designer work in a timezone that overlaps your business hours by at least four hours per day, so feedback loops don't span 24 hours each way? Screen two: do they have a verifiable named-client portfolio with at least two projects in your category? If both are yes, you can hire someone three thousand miles away with no quality loss.
What does matter, and what brands should actually screen for: a named senior designer (not a junior on the agency team) on every call, a four-hour-or-better daily working overlap, two named-client references in your category, and a written contract before deposit. We're a New York and Delhi agency with offices in London and Sydney; we've structured our calendar to keep US, UK, and India hours all on same-day response. Plenty of mature firms have made the same call.
For brands that genuinely require US-incorporated firms (federal contractors, healthcare and finance under specific compliance regimes), state that constraint upfront. The market is large enough that you can satisfy the constraint without sacrificing the four real screens above. Don't pay a 30 percent local-only premium for a designer whose physical location your project will never actually use.