Fragile Global Supply Chain Remains Challenge

The fragility of global supply chains exposed during the COVID-19 pandemic remains one of the top economic challenges facing the world, says Capital Group. Globalization has long been characterized by developed market countries offshoring production to lower cost locations, but now, companies are realizing the need to build redundancies into their supply lines. This shift will bring more countries into global trade networks, posing the start of the ‘reglobalization’ era. Potential ramifications of near-term supply chain shifts include diversification from China which will take time; greater levels of corporate spending and higher operating costs; and higher costs for consumers. The article can be accessed ‘Supply chain shifts signal reglobalization.’