The landscape of global supply chains is undergoing a notable transformation. According to a survey conducted by Indago in February 2024, there’s a marked trend among supply chain and logistics professionals to diversify their manufacturing and sourcing strategies away from China. The data indicates that 44% of respondents have reduced their reliance on China, with 36% decreasing and 8% greatly decreasing their engagement with Chinese suppliers over the past three years.
Reshoring and Near-shoring Trends
The move towards reshoring and near-shoring is gaining momentum as companies seek competitive advantages and aim to mitigate global supply chain risks. While 24% of companies have increased their reliance on China, a significant 32% have maintained their level of engagement. The shift is not without its challenges, as executives point out the lack of infrastructure and the difficulty in qualifying multiple sources as potential hurdles.
Diversification for Resilience
Looking ahead, companies are planning to broaden their supply chain horizons. Mexico emerges as a preferred alternative, with 60% of respondents considering it for their global supply chain expansion. Vietnam, India, and Thailand are also on the radar for many companies, highlighting a strategic move towards diversification to build more resilient supply chains.
For a deeper dive into the strategies companies are employing to realign their global supply chains and the challenges they face in moving away from China, the full Indago report is available for download.
