Is the practice of relocating production to the other side of the world in order to optimize margins behind us? Our economies have become dangerously interdependent.
Pharmaceutical manufacturers in France are worried that they will no longer be able to produce the drugs they sell, as they have outsourced all of their production to China.
Apple will no longer able to supply replacement iPhones as the majority of the parts are produced in China.
In short, the effects on businesses from the Coronovirus pandemic will force the question of a new form of globalization. There will not be a complete withdrawal of dependence for international products, but probably a transition continent by continent of integrating localized sourcing plus international sourcing. This “plan B” thinking and planning will reduce the effects on the supply chain for future “crisis”. The probability of these kinds of events happening more and more often is certain.
In addition, according to a recent National Association of Manufacturer (NAM) survey, 53.1% of manufacturers anticipate changing how their operations function following the effects of the Coronavirus and ⅓ expect a disruption in their supply chain.
At BizBiz Share we have always positioned our platform as a USEFUL tool for manufacturing companies during a stable economy. We frequently mention that in the event of a downturn in the economy, we would become NECESSARY for businesses.
Never before have we considered a situation like the one we are in today, where global supply chains are completely disrupted. We now know that in this context we have become an ESSENTIAL platform!
The globalization of the economy as we know it will never be the same. From now on companies will try to return to a local supply by having access to the surplus inventories of their neighbouring companies instead of sourcing in Asian countries.
In addition, many companies will postpone the purchase or replacement of new equipment and will sell equipment no longer in use.
BizBiz Share is in an exceptional position to help the industry by offering a unique product to manufacturers and businesses in order to promote the local economy and help solve the upcoming disruption to their supply chain.