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To: blam
From the article: Companies will look closer to home for product sourcing.

They would if they could. Economies of scale, manufacturing costs, and intellectual property rights often dictate otherwise.

Companies will be forced to shed a lot of their delusions about Just-In-Time (JIT) supply chains and revert, at least partially, back to Just-In-Case stockage policies. They'll carry more weeks of supply of products in warehouses.

How many weeks of supply? Depends on how long it will take to buy or manufacture replacements for their customers versus how much those customers are willing to pay for the additional storage fees and cost-to-hold of the extra inventory.

Manufacturers that are highly dependent on computer chips will likely risk carrying two years of additional inventories, knowing that technology changes quickly and those chips could become close to worthless if superseded.

23 posted on 05/20/2022 6:51:20 AM PDT by T.B. Yoits
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To: T.B. Yoits
Economies of scale, manufacturing costs, and intellectual property rights often dictate otherwise.

Exactly. This is near and dear to my professional heart.

It costs less to transport a shipping container thousands of miles from Asia to a port on the East Coast of the U.S. than it does to truck that same container a couple of hundred miles within the U.S.

25 posted on 05/20/2022 7:10:21 AM PDT by Alberta's Child ("It's midnight in Manhattan. This is no time to get cute; it's a mad dog's promenade.")
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