Insights
The Global Supply Chain Is Moving Closer To Home
The pandemic has exposed risks of relying on distant global supply chains. This fallout has resulted in many companies either considering reshoring to bring their supply chains closer to their home market, or building more diversified, multi-regional supply networks. This will result in less reliance on distant and low-cost manufacturing locations.
https://www.bloomberg.com/sponsors/pgim/evolving-economics-are-creating-a-new-normal/
Tectonic Shifts Underway In Global Manufacturing and Supply Chains
Bank of America found in a recent survey that companies have experienced supply chain disruptions in over 80% of their global operational sectors during the pandemic, prompting 75% of these companies to place very high priority on their reshoring plans. Disruptions from the pandemic are a major driver that has accelerated reshoring, but stakeholder capitalism, where corporations focus on shareholders’ interests, as well as the broader community of consumers, employees and the state, is also driving the migration from distant locations to North America. The overwhelming conclusion is that the many benefits resulting from relocating manufacturing and related supply chains dramatically outweigh the costs and risks of staying put.
https://www.bofaml.com/en-us/content/tectonic-shifts-in-global-supply-chains.html
US Relevance in Battery Supply Chain May Hinge on 2020 Election
Tesla outlined various new supply chain strategies during its recent Battery Day event, including plans to build its own battery cathode manufacturing plant in North America, with company executive Andrew Baglino citing the potential for savings and environmental stewardship. An August 25th Senate Special Committee Report states “a national commitment to responsible mining, reclamation, and recycling within the United States can provide supply chain security, create jobs, and support American industry and leadership while protecting the environment.”
Amazon Logistics’ Planned 2020 Growth Exceeds Previous 3 Years Combined
A clear trend, primarily driven by the pandemic, is emerging whereby supply chains are becoming shorter and more localized. This “closeshoring” dynamic involves moving production from overseas to North America. The trend also involves creating many smaller, distributed warehouses that can forward position goods for faster delivery to customers.
https://www.supplychaindive.com/news/rbc-amazon-logistics-delivery-stations-growth/585565/
Contact Us
