Winners and Losers if Supply Chains Shift Away From China

The Conference Board, Inc., 13 pages, February 15, 2022
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If multinationals diversify from China, which countries are prepared to be new suppliers to manufacturers? Which countries are likely to become losers?

Document Highlights

This study provides insights on economies that either win or lose global manufacturing supplier market share if companies diversify production away from China or reorient their supply chains.

The study finds that:

  • North America (the US, Canada, and Mexico) has a sizable supplier base capable of supporting more manufacturing activity than it currently does.
  • China cannot be easily replaced by other economies as a supply source at large.
  • Economies likely to benefit from the reshuffling are Bangladesh, Indonesia, India, Pakistan, the Philippines, and Vietnam.
  • It is a use case of The Conference Board Global Supplier Index (GSI), illustrating how one can obtain insights from the GSI by comparing values across economies.

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