Most in the industry have never experienced anything like the Coronavirus disease (COVID-19) pandemic. This global disruption has affected supply chains across every industry, and in the same breath, destroyed and heightened demand for an array of products and services. It has also forced companies to rethink their manufacturing dependence on a single country. Consider this: the term “reshoring” has been spiking in Google search terms, and one-third of companies have or plan to move their supply chains out of China by 2023.
COVID-19-induced supply chain disruptions in China, which has led to the inability for the United States to receive critical shipments of personal protective equipment (PPE), brought the conversation mainstream. However, there have been growing business reasons to have a diversified strategy well before the pandemic—rising labor costs, human rights issues, tariffs and geopolitics all play a role.
But, what will it really take to reshore or nearshore to Vietnam, Thailand, Mexico, or right here in the United States? And, what can companies do to ensure supply chain resilience?