As Russia’s war against Ukraine escalates and sanctions by the U.S. and other countries intensify, so does their impact on supply chains around the world.
Going through recent events like the U.S.-China trade war, Covid-induced disruptions, followed by the major armed conflict, many firms that had been skeptical about the idea of reshoring and multi-sourcing started to reexamine their options… they are living through the era of disequilibrium, and all of a sudden ‘just-in-case’ sounds more reasonable than ‘just-in-time’…
After the jolts from these successive events…the momentum will be built towards a model of more regionalized supply chains, with weakened linkages in some areas but also strengthened ones in other corners…
Many big tech companies put facilities in Poland and Hungary are quite close to the fire now. It is forcing those companies to shift capacity and volume to safer regions, like North and South America…
Source: Forbes Supply Chain Crisis Worsens As Russia’s War Against Ukraine Continues (forbes.com)