Reshoring of regional manufacturing after the COVID-19 pandemic

Submitted by Tedora Aibu on 13 May 2020

EnterpriseAI has published an article on the topic of reshoring regional production as a result of the current COVID-19 crisis. It details on the vulnerabilities of global supply chains exposed by the COVID-19 pandemic which have reignited calls for reconstituting regional production capabilities with the ultimate goal of reshoring manufacturing, mainly from China. However, this comes along with risks such as fluctuating demand, where a production line could be set up to meet peak demand, but demand fades and equipment remain idle. Observers note that the COVID-19 pandemic might provide sufficient shock to global supply chains to motivate investors and other technology acquirers. However, investing in next-generation manufacturing may be a good way to lose money. Nevertheless, supply analysts have noted that advanced production technologies ranging from manufacturing execution systems to 3D manufacturing confer key advantages to North American and European producers.

To express your interest and discuss this topic in the COVID-19 Forum, please click here.

Share this Article