Manufacturing of all sorts has been diversifying away from China. On the low cost end, industries that are relatively easier to move (apparel, footwear, home goods, furniture) have been moving for several years as labor costs have been more advantageous in places like Vietnam, Cambodia, Bangladesh, India. This is mostly an extension of the reason such industries went to China in the first place, the labor cost arbitrage play, says Kamala Raman, Sr Director Analyst at Gartner Inc., for the latest edition of The Logistics Point Magazine.
In her interview raman explains why companies are moving away from the Asia country and what it will mean for the global supply chain. But is Covid the only reason to blame?
Global supply chains were being disrupted before COVID-19 came along. The U.S.-China trade war and Brexit symbolized resentment at three decades of globalization — a trend that supply chains have been at the forefront of driving.
Read the full interview with Kamala Raman HERE…