Manufacturing producers are
shifting away from foreign suppliers of inputs toward more local ones, choosing
to “go local.” Data confirms the trend is a clear departure from the heydays
of outsourcing: the share of local value added is now increasing in mature
economies. The decision to go local is broad-based across industries and
countries. Companies that shift towards local suppliers are better positioned to
achieve mass customization and respond to changing customer tastes. The shift is
also a response to societal concerns over sustainability.