The Future of Global Supply Chains

global supply chains

The world has experienced significant upheaval in the last few years, and the global supply chain is expected to face a new set of challenges as a result of the Ukraine crisis. With supply chains abroad still struggling to adjust to changes ushered in by the coronavirus pandemic, many U.S.-based companies are reconsidering their supply chain partners. Whether you’re thinking about reshoring now or would like to keep this possibility in mind, it’s important to stay apprised of the latest global trends in manufacturing and shipping. Here, we share more about what may lie ahead for the future of supply chains. If you’re interested in learning more about manufacturing in Mexico vs. China, here’s what you need to know:

There Will Be An Increased Need For Sustainability

As we’ve seen since the onset of the COVID-19 pandemic, global supply chains are remarkably fragile. Many industries are still recovering from the disastrous impacts of the pandemic, so an increased need for sustainability has already arrived. There are several ways to achieve this, from implementing digital tools to overseeing operations to nearshoring to reduce lead times.

Localization Is Expected to Become More Common

Globalization defines our current era in supply chain management. Although globalization isn’t going anywhere, there’s no question that localization is an emerging trend that will continue to strengthen. There’s a certain level of risk involved when production operations are located overseas, and moving the manufacturing process closer to home can mitigate this risk. In the future, we may see more governments incentivize localization.

Highly-Skilled Workers Are on the Rise

Although China will remain one of the world’s most important manufacturing hubs, competition is already here and will increase in the future. Relocating facilities from China to emerging markets is a major trend, as workers in these emerging markets are often young and highly-skilled. In the coming years, global supply chains may react to shifting demographics and favor the availability of talent in emerging markets.

As the global supply chain evolves for the future, you may be interested in moving operations closer to the United States. There are several advantages to manufacturing in Mexico vs. China, including faster lead times, reduced shipping costs, and access to skilled workers. The CaliBaja team is capable of manufacturing high-quality products for a plethora of industries, and we’re looking forward to learning more about your project. During our consultation, we’ll walk you through our processes and determine if we’re the right fit. With more than 40 years in the business of contract manufacturing and a team of 1,000+ talented individuals, you can feel confident that your project is in the right hands. To schedule a meeting, please contact us.


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