SUPPLY CHAINS TO SHIFT UNDER BIDEN
Supply chains to shift under biden. Companies plan to continue moving supply chains out of China regardless of who the winner of the election would have been. But now the President elect Biden is the winner, they will continue the move out of China. “Covid really put a spotlight–on supply chain risk.” While investment in China will remain important, we’re seeing U.S. companies planning to spread that out more. Companies plan to continue shifting supply chains out of China. The issue came into focus in response to President Trump’s trade war with China, but it only gained importance across corporate America due to the coronavirus pandemic, drawing on findings from a recent survey conducted by the PwC , a powerful accounting firm. “Covid really put a spotlight on supply chain risk, and one of the things that we’re seeing is supply chain derisking has moved all the way up to the boardroom level, as we see now concentrations in our supply chains that was maybe not evidenced before. Supply chains to shift under biden.
The beneficiaries of exits from China, home to the world’s second largest economy, are likely to be countries in Southeast Asia, Mexico and the United States. In PwC’s survey of 578 U.S. executives there was traction for policies to boost American manufacturing. Approximately 46 % of respondents said they “strongly agree” that the government should ramp up U.S. production of essential products to aid the nation’s economy. The production of medical equipment and pharmaceutical supplies outside the U.S., in particular has seen renewed scrutiny during the pandemic, as factories across the globe have shuttered and supply shortages have arisen. The combination of a trade war and pandemic showed that retailers also had relied too much on production in China, former Macy’s CEO Terry Lundgren told CNBC earlier this year. Trump’s trade war resulted in massive tariffs and companies having to relocate where they were producing goods.