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Storm Warnings

Reshoring advocates are on edge about global conflict

General awareness of heightened global conflicts in Ukraine and the Middle East is above average at the moment. But at least one outlet is specifically looking at another potential front due to the impact it could have. Here's an excerpt from the Reshoring Initiative's latest letter:

"Present-day inadequacies in the U.S. military make war more likely. The risk of a Taiwan war along with other global conflicts has the potential to impact GDP, corporate profits and civilian safety. These increasing risks demand foresight and preparation by companies and countries alike."

That's frightening, but also practically informative for those worried about trade conditions. Here's more from TRI, which cites external sources for your consideration.

"According to AlixPartners’ Disruption Index, 68% of CEOs report that U.S.-China tensions are causing them to change plans.” 94% of SDC respondents say reduction of China sourcing dependence is underway. According to McKinsey's Geopolitics and the geometry of global trade, the use of terms such as “decoupling,” “de-risking,” “reshoring,” “nearshoring,” and “friend-shoring” in corporate presentations increased more than 20-fold between 2018 and 2022. Medius’ October 2023 survey found that 69% of manufacturers are reshoring and 94% of those say the process is successful."

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