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.
As the global pandemic deepens and the human cost of Covid-19 rises, the novel coronavirus outbreak is sending shocks through the world economy. But across industries, companies can take action now to protect their employees and customers and minimize the economic damage.