Covid-19 breaking supply chains, encouraging reshoring, GSA says

The recent tariffs and trade wars had already stretched global supply chains to breaking point, but the Covid-19 pandemic broke those chains, according to a report by Gold Street Advisors (GSA).

In a wide-reaching analysis on the impact of the pandemic on metals markets and what will change in its aftermath, the New York, United States-based asset management and risk advisory firm said that going forward, companies will be reluctant to have all their supply needs coming from one foreign country.
As a result, companies will move to diversify in favor of local suppliers, even at higher costs, in an effort to increase supply chain security, GSA added.
"If you can't actually have a functioning factory because you don't have critical spare parts coming from China, Thailand, Malaysia, or another country, then that poses critical issues when it comes to keeping your supply chain fed with materials," Robin Bhar, GSA chief metals analyst and co-author of the report, said during an interview.

"Automakers, for example, have to ask themselves whether they...

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