“Two basic rules of life are: 1) Change is inevitable. 2) Everybody resists change.”
-W. Edwards Deming
The global supply chain for most of today’s industry has been built up over the last quarter century. Manufacturing and logistics firms that work shoulder to shoulder have invested in the status quo for a long time in order to fulfill the increasing demand for products around the world.
This article from the Harvard Business Review makes the case that supply chains may be adjusting to rising costs in Asia and business models are changing because of technology, innovation, and growing sentiment to protect companies by national governments.
I would add that customer patterns and preferences are rapidly changing as well. It matters where things are made and how fast they can be delivered. When supply chains change, location decisions need to be made or reconsidered. Given the scale of the supply chain changes underway, we can expect a bevy of location decisions. This movement will have economic winners and losers and could have a profound impact on regions of the country.
For our economic and community partners, this means we must work together with companies and study industry trends so as to not be surprised when global changes arrive on our doorstep.
Columbus 2020 Update