Rebuilding for Resilience

Companies are now shifting from just-in-time to just-in-case strategies, holding buffer stocks and diversifying suppliers. The efficiency gains of lean supply chains came at a price we only discovered when everything went wrong.

Nearshoring — moving production closer to end markets — is gaining momentum. American companies are building factories in Mexico instead of China. European firms are investing in Eastern European production capacity. Proximity reduces both shipping time and geopolitical risk.

Dual-sourcing critical components from multiple countries provides insurance against disruption. This costs more than single-sourcing but prevents the catastrophic shutdowns that paralyzed industries during the pandemic.