Many U.S. and Canadian businesses are rethinking their China-based supply chains. There are many reasons for this, including lingering fall-out from pandemic-related supply chain disruptions, changing economic conditions within China, increasing geopolitical tensions, and a desire to minimize risk.
Whatever the reason, businesses are not alone in thinking the time is right for a supply chain adjustment. Research by Reuters found that 24% of companies had moved parts of their supply chains out of China during 2022, compared to 15% in 2021. And, the American Chamber of Commerce in China (AmCham China), reported in early 2023 that for the first time, a majority of its membership “no longer regard China as a top-three investment priority – a place where they should spend money to grow their business.”
Businesses looking to make a change will find that several options are available:
- Some may wish to relocate all production back to North America.
- Others may want to guard against a future disruption by identifying backup suppliers.
- And still others may be interested in shifting some production to another low-cost Asian country, or closer to home in Mexico or Latin or Central America.
Our whitepaper, “Nearshoring, Friendshoring, Reshoring and Dual-Sourcing Among Options for Businesses Rethinking China-Based Supply Chains – But Logistics Efficiency is Integral to Each,” takes a deep look at current sourcing practices, and discusses the following:
- Current trends in Reshoring, Nearshoring, Friendshoring, China-Plus-One and Dual-Sourcing.
- The importance of a logistics strategy for U.S. and Canadian businesses.
- The need to incorporate shipments originating in Mexico.
- Management of shipments arriving in North America from China and other countries.
- Examples of companies that have taken steps to minimize their reliance on a China-based supply chain.