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CNBC

China may become one of many hubs as companies diversify manufacturing after coronavirus shock

China may become one of many hubs as companies diversify manufacturing after coronavirus shock

The coronavirus is “a wake-up call for pretty much every company,“ said Gerry Mattios, expert vice president at Bain & Company. “The number one item on the agenda is, ‘how do I build resilience in my supply chain?’”

  • May 25, 2020
  • min read

CNBC

China may become one of many hubs as companies diversify manufacturing after coronavirus shock

“It’s been a wake-up call for pretty much every company,“ Gerry Mattios, expert vice president at Bain & Company, said in a phone interview last week. “The number one item on the agenda is, ‘how do I build resilience in my supply chain?’”

A key component of that strategy is building flexibility — the ability to switch quickly from different production sources in response to future challenges, Mattios said.

“We’re not going to see China drying up on manufacturing all of a sudden,“ he said. “A big (portion) of the exporting manufacturing capacity that China had could potentially be shifting out of China, but a lot of the capacity for internal consumption in China will stay in China.”

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