05 Aug 2017 Back

Considerations in the era of protectionism

There are dramatic changes happening when it comes to the political and economic realities of today, major business powers around the globe who were trying to save money and reduce their expenditure when it comes to different parts of the trade such as: warehousing and inventory management, packaging and assembly, project cargos, freight forwarding and industry array; by relying on more convenient options from East Asia for example, are urgently forced to think of an alternative when it comes to suppliers because those among other changes are affecting their supply chain.
A set of things to be considered in the era of protectionism are going to be enumerated now, to inform businesses that their supply chains, warehousing and inventory management, packaging and assembly along with their project cargos are naturally influenced by those changes in such an interconnected world:
1. East Asia shrinking cost advantage: international businesses and manufacturers used to greatly rely on convenient economic givens, such as the forever-known advantage of efficient production cost available in East Asia, however numbers have been proving that the production rate in China has been going up which ultimately forces the cost to go even lower meaning that the profit of those big businesses will be disturbed along with their project cargos, packaging and assembly along with their warehousing and inventory management no doubt.
2. Advances in manufacturing technology: thanks to the technological advances when it comes to manufacturing including the employment of robotics and other advances, there will be a ‘’relocalization’’ of supply chains meaning that many companies will start producing regionally and supplying on a regional level as well.
3. The shift toward protectionism: there is a global uncertainty concerning the world of business, big countries are implementing new ‘’introvertive’’ policies like Britain and America; and here it goes without saying that warehousing and inventory management, packaging and assembly along with project cargos would be highly affected.
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