EMSNOW

EMSNOW on Tour - Eric and Dieter Explore Regionalization

December 21, 2021 Eric Miscoll Season 1 Episode 11
EMSNOW
EMSNOW on Tour - Eric and Dieter Explore Regionalization
Show Notes

In a pause between factory visits, Eric and Dieter explore the some of the key macro and micro trends impacting the industry. In this episode they explore the trend related to moving manufacturing out of China and the potential growth in regionalization, or local-for-local.

Supply chain, logistics issues, continued risk, trade wars and geopolitical issue are all playing into the desire to reshore, in some cases OEMs are even insourcing manufacturing previous undertaken in Asia.

With increased domestic demand, those with factories in China are using that capacity for that region and growing European capacity for Europe.

Dieter also highlights trends around increased factory floor inventory and the ongoing related cash issues. Dieter points out that in these cases cash is king!