Covid-19 to accelerate greater diversification of supply chains
The disruption associated with Covid-19 has challenged the resilience of manufacturing supply chains across the globe and is set to accelerate a trend towards regional supply chains and nearshoring. Poland is expected to be among beneficiaries of this trend. The creation of alternative manufacturing locations has the potential to shift trade flows and, in turn, the dynamics of the global industrial and logistics market, according to Savills. “The US-China trade war had already started to re-shape global manufacturing and supply chains and boosted trade in other parts of the world, such as Mexico and Vietnam. The Covid-19 pandemic, however, has now turned supply chain resilience into a global, increasingly politicized, issue, with countries, including France, Japan and India, all making calls for more economic self-reliance,” said Paul Tostevin, director of Savills World Research.