Viewpoint: How coronavirus will change global supply chain

Viewpoint: How coronavirus will change global supply chain

The coronavirus will drive a shift in global manufacturing that could influence investment patterns for decades.

This builds on factors that were already at work. One is automation, and the reduced importance of cheap labor to production. Technology is enabling more production with fewer people, reducing the benefits of cost arbitrage. Some companies are looking to bring production closer to home, to be more flexible and responsive to markets. Advancements in the Internet of Things are enabling this to happen on a new scale.

The second driver is trade policy, and the U.S.-China trade war in particular. Some U.S. companies that […]

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