Globalisation in reverse as companies switch to ‘onshoring’ to gain an edge

Investment house Ellerston Capital’s Bill Pridham says the shift to “deglobalisation” of the economy has much further to run and many companies hit by supply chain bottlenecks will need to bring production closer to their customers to gain a competitive edge.

Supply chains have been thrown into chaos in recent years, as the US-China trade war, the COVID-19 pandemic and the Ukraine war all contributed to shortages of everything from cars to microchips. “It’s really underscored how critical supply chains are, and many companies are really rethinking their supply chain, in terms of their sourcing and the logistics around that,” Pridham says.

Great!

All beer and headlines until the onshorers discover their cost base has blown out while their offshoring competitors eat them for dinner.

The wealthy who are collectively responsible should be made to pay to fix it.

Have you sacked BevanShields yet?

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