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High Stakes: Manufacturers Are Rethinking Global Supply Chains

Automation has lowered the cost of manufacturing, making it less expensive to produce goods closer to home.

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High Stakes: Manufacturers Are Rethinking Global Supply Chains
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The Covid-19 pandemic exposed the hazards of depending on a specific country or region for assembled goods and components, a risk that has risen over the past 20 years. Many companies now are considering decoupling US and China value chains, especially as increased automation in manufacturing lowers production costs and erodes the labor cost benefit of assembling goods in foreign markets. US sectors depend on imports from China and Far East Asia worth $680 billion, and they could be looking to bring manufacturing closer to North America.

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