Video of Our MD at SubCon 2020 Discussing Reshoring

The past 18 months have often felt like being on a roller coaster in a dark room. It’s up and down constantly and you can’t see your hand in front of your face! As the world finds its footing after a very rocky period one of the clear trends emerging is that reshoring and nearshoring are replacing the global, low-cost and carbon intensive supply chains developed over the past 30-40years.

Please take a couple of minutes to watch this video, where our MD Troy Barratt discussed trends in industrial reshoring.

The three main drivers that have sped up the push for reshoring and nearshoring are:

  • COVID and its fallout has added friction moving things around the world, and you’d be hard pressed to make a strong case that things will get back to the “old” normal. More than 1 ½ years into the pandemic and ports, cities and trade routes are being shut and severely disrupted, with no clear end in site.

  • Climate change and the actions governments are taking to address and mitigate it will lead to a price of carbon, and this means both long haulage and high polluting countries will have to change AND costs will go up. A more balanced, fair trade is replacing “free” trade that disregarding the carbon intensive nature of existing supply chains.

  • Industrial automation reduces labour input per part made, so it’s more and more about capital investment in smart machines and well trained workforces, not cheap labour Long may this trend continue

Long may this trend continue