{"id":573564,"date":"2020-08-10T04:09:41","date_gmt":"2020-08-10T04:09:41","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/10\/over-a-quarter-of-global-product-sourcing-will-move-to-new-countries-study-finds\/"},"modified":"2020-08-10T04:09:41","modified_gmt":"2020-08-10T04:09:41","slug":"over-a-quarter-of-global-product-sourcing-will-move-to-new-countries-study-finds","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/10\/over-a-quarter-of-global-product-sourcing-will-move-to-new-countries-study-finds\/","title":{"rendered":"Over a quarter of global product sourcing will move to new countries, study finds"},"content":{"rendered":"

<\/a> Good news if you\u2019re looking to integrate your company into the global supply <\/strong>chain \u2014 a \u201creordering\u201d of the system could open up new windows:<\/strong> More than a quarter of global product procurement could shift to new countries over the next five years, a new study by McKinsey Global Institute<\/a> shows. Products worth up to USD 4.6 tn are at stake due to cost considerations and state pressure on manufacturers to become more self-reliant, the research arm of the global consulting firm said in a report. The findings highlight the pandemic-induced shift from long supply chains to \u201cresilience and regionalization,\u201d which were building [up even] before the pandemic hit, says the Financial Times<\/a>.<\/p>\n

The need for resilience: <\/strong>According to MGI\u2019s report, companies can expect a major disruption to their supply chains every 3.7 years, leading to a loss of over 40% of a year\u2019s worth of profits every decade. This is a result of trade tensions, cyber threats, and environmental risk subjecting businesses to \u201ccostly interruptions,\u201d said MGI partner Susan Lund.<\/p>\n

The take-home lesson: Diversify and keep it in your neighborhood. <\/strong>Companies need to have options and also bring their supply chains closer to home, Lund said. \u201cYou can invest in supply chain resilience and still come out ahead.\u201d<\/p>\n

Analysts are split on whether we\u2019re going to see a reversal of globalization.<\/strong> Although Boston Consulting Group recently said that US-China trade could shrink by up to 15% from 2019 levels come 2023, S&P Global Ratings analysts say US companies may still be hesitant to lose access to the world\u2019s second-largest economy (and largest manufacturing hub). Many in the US have, however, admitted that their supply chains are becoming overdrawn and complex, Lund said. On the flipside, markets sage Mohamed El Erian had said back in May<\/a> that we\u2019re entering an era of deglobalization, which will be driven largely by changing company behavior. Businesses will move away from relying on \u201cjust-in-time\u201d models as resilience and sustainability become watchwords. That means they will begin localizing supply chains, and that also means there will be an increased intertwining of the public and private sectors in developed markets.<\/p>\n

Want more? Go read <\/strong>The great trade unwinding<\/a><\/strong>, by the FT\u2019s Rana Foroohar for how this fits into the \u201cdramatic\u201d change we\u2019re about to see in global commerce patterns.<\/p>\n","protected":false},"excerpt":{"rendered":"

Good news if you\u2019re looking to integrate your company into the global supply chain \u2014 a \u201creordering\u201d of the system could open up new windows: More than a quarter of global product procurement could shift to new countries over the next five years, a new study by McKinsey Global Institute shows. Products worth up to […]<\/p>\n","protected":false},"author":1,"featured_media":573565,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9272],"tags":[107,72,131,1510],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-573564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-covid-19","tag-enterpriseam","tag-manufacturing","tag-the-macro-picture","wpautop","entry"],"acf":{"mongo_id":"bdb765ed-0df4-4749-b40f-32105a46fada","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2020\/8\/62.jpg","photo_position":"above","related_issue":[573546],"teaser":"","voice_url":""},"yoast_head":"\nOver a quarter of global product sourcing will move to new countries, study finds - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2020\/08\/10\/over-a-quarter-of-global-product-sourcing-will-move-to-new-countries-study-finds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Over a quarter of global product sourcing will move to new countries, study finds\" \/>\n<meta property=\"og:description\" content=\"Good news if you\u2019re looking to integrate your company into the global supply chain \u2014 a \u201creordering\u201d of the system could open up new windows: More than a quarter of global product procurement could shift to new countries over the next five years, a new study by McKinsey Global Institute shows. 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That\u2019s the headline message from two recent reports from the United Nations Conference on Trade and Development (UNCTAD) and the Organization for Economic Cooperation and\u2026","rel":"","context":"In "THE MACRO PICTURE"","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/571.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":545123,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/06\/ems-are-struggling-to-recover-from-the-impact-of-the-pandemic\/","url_meta":{"origin":573564,"position":3},"title":"EMs are struggling to recover from the impact of the pandemic","author":"enterpriseam admin","date":"6 March 2022","format":false,"excerpt":"EMs are still struggling to address the economic repercussions of the pandemic (to say nothing of the effects of Russia\u2019s war in Ukraine)? With the pandemic in its third year, the post-covid recovery has been the primary focus for the global economy, but developing countries and emerging markets are facing\u2026","rel":"","context":"In "THE MACRO PICTURE"","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/3\/434.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":550583,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/07\/unctad-trims-global-economic-growth-to-2-6-in-2022\/","url_meta":{"origin":573564,"position":4},"title":"UNCTAD trims global economic growth to 2.6% in 2022","author":"enterpriseam admin","date":"7 April 2022","format":false,"excerpt":"UNCTAD trims global economic growth to 2.6% in 2022: The United Nations Conference on Trade and Development (UNCTAD) has revised downward its global economic growth forecast for 2022 to 2.6%, down from 3.6%, due to the war in Ukraine and the changes countries are making to their macroeconomic policies as\u2026","rel":"","context":"In "Macro picture"","block_context":{"text":"Macro picture","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainers\/macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/4\/453.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":564775,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/25\/the-job-market-in-the-covid-age\/","url_meta":{"origin":573564,"position":5},"title":"The job market in the covid age","author":"enterpriseam admin","date":"25 February 2021","format":false,"excerpt":"Here\u2019s how much global employment suffered from the pandemic: The global economy lost the equivalent of as many as 255 mn full-time jobs in 2020, the International Labor Organization (ILO) said in a recent report (pdf). That\u2019s around 8.8% of global working hours relative to 4Q2019, creating an unprecedented level\u2026","rel":"","context":"In "THE MACRO PICTURE"","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/2\/515.jpeg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/573564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=573564"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/573564\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/573546"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/573565"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=573564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=573564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=573564"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=573564"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=573564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}