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Going Local: Changing Global Value Chains and the Impact on Revenue and Jobs

The Conference Board, Inc., 18 pages, March 8, 2019
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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.

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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.

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