Supply chain and manufacturing:

what to do

         I wanted to talk about supply chain and manufacturing, and how that will be affected. Most of our goods—almost all of our electronics, medical equipment, clothes, and more—are made in China, where manufacturers benefit from low costs and, particularly in tech, proximity to other parts of the supply chain. I believe the cost-benefits calculus is going to be changing as a result of the current crisis. On both sides of the aisle, it’s hard to imagine any politician advocating for making more things in China in their platform.

Instead, I believe we’ll see new manufacturing hotspots emerge in places like Europa and South America. While Apple seems to be staying in Asia for the time being, it has already moved some of its manufacturing out of China and into Malaysia and Indonesia. India is also being heavily explored as an option by many companies. In some of these regions I think we’ll also see more and more robotics and automation in manufacturing to combat the low labor costs

 

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