Shoring up supply chains
The Covid pandemic and other global disruptions have highlighted the need for resilient supply chains as opposed to only cost-efficient ones. Supply chain diversification—onshoring, near-shoring, and friend-shoring—is the new manufacturing mantra, with de-risking from China high on the priority list. Beijing now accounts for 18% of total US imported goods, down from 23% in 2018. Meanwhile, imports have shifted to other Asian nations, India, and Mexico over that time, according to Morgan Stanley Research.1 As companies move factories, new winners and losers will emerge, impacting global economies, trade routes, payments, and more.
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