The European Business Review

RESHORING AND NEW GLOBALIZATION: THE FUTURE OF SUPPLY CHAINS

Aftermath the worldwide corona-virus pandemic explosion, many international companies have decided to repatriate their productive activities. Offshoring, practised for more than 20 years, seems to be outdated. Recent research carried out by McKinsey uses the term “great rebalancing” : by starting from 2025, 25% of world exports could be affected by the phenomenon of reshoring, i.e., the re-location of productive activities previously transferred abroad. This worths a 4.500-billion-dollars value. Reshoring is the opposite of offshoring, indicating the return of the industry transferred out of the national borders, especially in Asian countries, such as China or Vietnam, and Eastern Europe, such as Romania or Serbia. The phenomenon mainly affects the long supply chains, which are very distant from the relocating companies and not the short ones, which are deployed in neighbouring countries. The short supply chains, in contrast, are being strengthened, as it is happening in several European countries: companies previously relocated abroad, back down to their home country (backshoring) or neighbouring

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