Manufacturing is on the move. A survey by Gartner of 260 global supply chain leaders in February and March 2020 found that 33% had moved sourcing and manufacturing activities out of China or plan to do so in the next two to three years.
Results show that the COVID-19 pandemic is only one of several disruptions that have put global supply chains under pressure.
“Global supply chains were being disrupted long before COVID-19 emerged,” said Kamal Rman, senior director analyst with the Gartner Supply Chain Practice.
“Already in 2018 and 2019, the U.S.-China trade war made supply chain leaders aware of the weaknesses of their globalized supply chains and question the logic of heavily outsourced, concentrated and interdependent networks. As a result, a new focus on network resilience and the idea of more regional manufacturing emerged. But this kind of change comes with a price tag.”
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Source: Material Handling & Logistics