The Economist Intelligence Unit (EIU) said pandemic will reverse globalization by accelerating a move toward regional supply chains.
In a report published on Wednesday May 13, the Economist Intelligence Unit (EIU) said the pandemic will reverse globalization by accelerating a move toward regional supply chains.
Original Article Posted May 13, 2020
Author: Chloe Taylor
Since China was accepted into the World Trade Organization in 2001. Globalization has steadily increased as companies took advantage of lower production costs and demand opportunities available.
In recent years many companies have been shifting away from centralized supply chains. They are shifting to more regional supply chains supporting the regions in which the goods are produced.
The EIU now expects this trend to accelerate as key economic sectors such as pharmaceuticals, agriculture, and energy have had supply chain vulnerabilities exposed during the Covid-19 outbreak.
This reverse in trend could lead to a revitalization of American manufacturing in coming years. As plants relocate supply chains to smaller regional hubs, new and closed facilities will be needed to support these operations.