Aly Song (Reuters)
It is the irony of our new economic age. Globalization brought with it elongated supply chains, as manufacturing and production were moved across oceans and continents. And now, a retreat from unrestrained offshoring (a trend some refer to as deglobalization or regionalization) appears to be making supply chains even longer.
Economists at the Bank of International Settlements (BIS), a Swiss-based consortium of central banks from around the world, recently mapped the realignment of global supply chains following the great supply chain shocks of the covid pandemic and Russia’s invasion of Ukraine. They found that since December 2021, companies now have fewer direct links with overseas suppliers.
“[R]eliance on cross-border suppliers has fallen markedly,” the BIS economists noted in an October 2023 paper. In place of those relationships: “on-shoring,” or the process of bringing production back home…..Story continues….
By: Mary Hui
Source: On-shoring is making global supply chains longer and twistier
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