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Supply Chain Shift Reshaping Global Manufacturing

Financial Times Companies •
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Helium shortages have emerged as the latest threat to global chipmakers, disrupting production from Iran and Qatar. Companies are increasingly abandoning "just-in-time" supply chain models exposed by repeated shocks from pandemics, wars, tariffs and energy crises. The shift toward more diversified and regionalized manufacturing reflects a fundamental change in how businesses approach risk management.

Businesses are adopting localized production models like "China-for-China" and "US-for-US" rather than seeking the lowest costs. Supply chain diversification is now being driven from within China itself, with manufacturers expanding into Vietnam, Thailand and Malaysia. Research shows companies tend to relocate within existing supplier networks rather than searching globally for new options.

Companies are investing in digital tools to map supply chains and identify vulnerabilities before disruptions occur. Resilience is increasingly viewed as a competitive advantage rather than just a defensive measure. However, some researchers warn that many businesses have reverted to pre-pandemic habits without fully absorbing recent lessons about supply chain dependencies.

Supply chains are no longer just operational support systems but increasingly becoming products companies can sell. Companies that develop ultra-agile supply chains can use them as strategic weapons to accelerate product development and create demand rather than simply responding to existing demand.