Donald Trump’s assaults on big corporate companies and their reliance on Mexican manufacturing has caused businesses to revisit their supply chain plans. For decades, companies have been steadily offshoring and outsourcing production, leading to a heavy dependence on foreign manufacturing and stretched supply chains across the globe.
It appears that the world may be entering a new phase of protectionism. If countries start raising tariff barriers and penalizing transnational corporations, the global supply chain model may grow untenable.
With this new era in mind, here are six tips that may allow companies to consider their own exposure to the threat of protectionism and prepare for measures that may allow for the rapid establishment of a local supply chain:
- Analyze the local market.
- Supplier development.
- Bend the ear of the government.
- Invest in automation.
- Innovation incubators.
- Insourcing.
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