During the COVID-19 pandemic, the world realized that supply chains are fragile and can have significant national strategic implications, especially at a time when geopolitical competition is on the rise.
Recent attacks on shipping in the Red Sea further show that the pre-pandemic world, where supply chains were largely undisrupted and efficient, is unlikely to return. These developments have enabled a widespread reevaluation of the global wave of outsourcing that began in the 1990s. Today, the term "supply chain" is an all-encompassing catchphrase spanning international trade, logistics and manufacturing in the context of both corporate operations and national economic security.
It is a broad topic, but S&P Global has the advantage of drawing on deep expertise across the enterprise to frame major themes and offer a glimpse of the future.
For this inaugural issue of Look Forward: Supply Chain, we tapped into the knowledge of multiple specialists in areas such as labor, mobility, geopolitics, decarbonization, shipping and international trade to present a series of articles that delve beyond the headlines and provide critical insights to our customers worldwide. Our deep dive into electric vehicles and batteries is a great example of how technology and geopolitics are reshaping global supply chains.
At S&P Global, we recognize that the world is in a state of transition and growing increasingly complex every day, which is reflected in the new risks associated with supply chains. We aim to go beyond what is expected and seek new levels of understanding to help companies, governments and individuals make an impact on tomorrow. This report is a product of that commitment, and we hope it will be of value to our readers.
During the COVID-19 pandemic, the world realized that supply chains are fragile and can have significant national strategic implications, especially at a time when geopolitical competition is on the rise.
Recent attacks on shipping in the Red Sea further show that the pre-pandemic world, where supply chains were largely undisrupted and efficient, is unlikely to return. These developments have enabled a widespread reevaluation of the global wave of outsourcing that began in the 1990s.Today, the term "supply chain" is an all-encompassing catchphrase spanning international trade, logistics and manufacturing in the context of both corporate operations and national economic security.
It is a broad topic, but S&P Global has the advantage of drawing on deep expertise across the enterprise to frame major themes and offer a glimpse of the future.
For this inaugural issue of Look Forward: Supply Chain, we tapped into the knowledge of multiple specialists in areas such as labor, mobility, geopolitics, decarbonization, shipping and international trade to present a series of articles that delve beyond the headlines and provide critical insights to our customers worldwide. Our deep dive into electric vehicles and batteries is a great example of how technology and geopolitics are reshaping global supply chains.
At S&P Global, we recognize that the world is in a state of transition and growing increasingly complex every day, which is reflected in the new risks associated with supply chains. We aim to go beyond what is expected and seek new levels of understanding to help companies, governments and individuals make an impact on tomorrow. This report is a product of that commitment, and we hope it will be of value to our readers.
The COVID-19 pandemic has transformed the concept of supply chains from narrowly defined operational systems within companies to a new framework for the manufacturing and distribution of goods defined less by operational and cost efficiencies and more by alignment with national interest and geopolitical competition.
Government policies will become even more national security-focused but remain engines of economic development. Elections bring uncertainty.
Even as supply chains return to normal, the need for resilience is as important as ever. Firms will prefer strategies that lower costs and risk, such as technology investments and reshoring. They will likely cut back investments in purely risk-reducing projects, including just-in-case inventory strategies and supplier diversification.
Container shipping handles 45% of global trade. How it will decarbonize is an open question.
Labor to support supply chains is coming under growing pressure from climate change, public health, corporate responsibility and other factors.
The automotive industry is undergoing a generational shift in its supply chain and must navigate a complex confluence of geopolitics and technological developments.
