Globalisation in reverse as companies switch to ‘onshoring’ to gain an edge

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Globalisation in reverse as companies switch to ‘onshoring’ to gain an edge
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Following turmoil in global supply chains, some argue there is a major shift taking place in the world economy whereby the decades-long move towards more interconnected supply chains is going into reverse

Investment house Ellerston Capital’s Bill Pridham says the shift to “deglobalisation” of the economy has much further to run and many companies hit by supply chain bottlenecks will need to bring production closer to their customers to gain a competitive edge.

Supply chains have been thrown into chaos in recent years, as the US-China trade war, the COVID-19 pandemic and the Ukraine war all contributed to shortages of everything from cars to microchips. “It’s really underscored how critical supply chains are, and many companies are really rethinking their supply chain, in terms of their sourcing and the logistics around that,” Pridham says.

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