For decades, companies have optimised their supply chains to benefit from the world’s lowest cost and most scalable manufacturing destination. China’s abundance of low wage workers, strong ecosystem of suppliers, component manufacturers and distributors have made it an efficient and cost-effective location to manufacture products, helping it to become the “factory of the world”.
However, a confluence of factors over the last decade has prompted countries to shift their supply chains away from China, either by reshoring (bringing production back to their home countries), nearshoring (moving production closer to their home countries), or friendshoring (moving production to friendly or allied countries), a process we have termed as the “Great Transition” in this article.
Read The Great Transition: A Global Emerging Market opportunity
