A Heightened Focus on Reshoring
24 Aug 2020
The COVID-19 pandemic exposed the risks inherent in the global supply chain, particularly the worldwide reliance on China for medical supplies. The supply chain turbulence experienced during the pandemic undoubtedly will impact future business decisions, extending beyond medicine to other industries, including electronics, aerospace, automobiles, defense, consumer products, and technology.
Manufacturing companies accelerated moving production to low-cost manufacturing countries (known as offshoring) in the early 1990s. In the rush to globalize, key manufacturing sectors were abandoned in the United States. But now that the vulnerabilities of doing so have been exposed, there is talk of “de-globalization,” or reshoring.