{"id":1335,"date":"2022-09-19T22:45:00","date_gmt":"2022-09-19T22:45:00","guid":{"rendered":"https:\/\/flex-main.lndo.site\/resources\/supply-chain-regionalization-not-a-binary-decision"},"modified":"2023-03-24T23:47:44","modified_gmt":"2023-03-24T23:47:44","slug":"supply-chain-regionalization-not-a-binary-decision","status":"publish","type":"resource","link":"https:\/\/flex.com\/zh\/resources\/supply-chain-regionalization-not-a-binary-decision","title":{"rendered":"\u4f9b\u5e94\u94fe\u533a\u57df\u5316\u4e0d\u662f\u4e8c\u5143\u51b3\u7b56"},"content":{"rendered":"<div id=\"overscroll-top\" style=\"background-color: #eaeef4;\"><\/div>\n<div class=\"resource-header block\">\n\t<div class=\"container\">\n\t\t<div class=\"breadcrumb\">\n\t\t\t<a title=\"Homepage\" href=\"\/\">Flex<\/a>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 384 512\"><path d=\"M365.3 256l-22.6 22.6-192 192L128 493.3 82.7 448l22.6-22.6L274.7 256 105.4 86.6 82.7 64 128 18.7l22.6 22.6 192 192L365.3 256z\"\/><\/svg>\n\t\t\t<a title=\"Resources\" href=\"\/resources\">Resources<\/a>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 384 512\"><path d=\"M365.3 256l-22.6 22.6-192 192L128 493.3 82.7 448l22.6-22.6L274.7 256 105.4 86.6 82.7 64 128 18.7l22.6 22.6 192 192L365.3 256z\"\/><\/svg>\n\t\t\t<a title=\"Supply chain regionalization not a binary decision\">Supply chain regionalization not a binary decision<\/a>\n\t\t<\/div>\n\t\t<h1>Supply chain regionalization not a binary decision<\/h1>\n\t\t\t\t<div class=\"separator\"><\/div>\n\t\t<div class=\"details\">\n\t\t\t\t\t\t<div class=\"authors\">\n\t\t\t\t\t\t\t\t<div class=\"author-detail\">\n\t\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"image\">\n\t\t\t\t\t\t\t\t<img decoding=\"async\" alt=\"Jean-Francois Zoeller, Senior Vice President of Operations, EMEA, Flex\" src=\"https:\/\/flex.com\/wp-content\/uploads\/2023\/02\/jean-francois-zoeller-336x336.webp\" title=\"\">\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<div>\n\t\t\t\t\t\tby <a title=\"Jean-Francois Zoeller\" href=\"\/leadership\/jean-francois-zoeller\">Jean-Francois Zoeller<\/a><br>\n\t\t\t\t\t\tSenior Vice President of Operations, EMEA\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"date detail\">\n\t\t\t\tPosted on<br>\n\t\t\t\t19 9 \u6708, 2022\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"categories\">\n\t\t\t\t<div class=\"categories-wrapper\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"cat-tag\">Blog<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cat-tag\" data-cat-level=\"2\" data-destination=\"\/leadership-insights-blog\" href=\"\/leadership-insights-blog\">Leadership Insights<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"cat-tag\" data-cat-level=\"2\" data-destination=\"\/solutions-and-services\/supply-chain#resources\" href=\"\/solutions-and-services\/supply-chain#resources\">Supply Chain<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n<\/div>\n\n\n\n<div class=\"sidebar block normal-sidebar\">\n\t<div class=\"container\">\n\t\t<div class=\"content\">\n\t\t\t\n\n<h2 class=\"has-medium-font-size wp-block-heading\" id=\"h-globalization\" style=\"font-weight:600\">Globalization<\/h2>\n\n\n\n<p>The inter-dependent and inter-connected model of world trade has been the global economy\u2019s growth engine since the end of the second world war.<\/p>\n\n\n<div id=\"id_69e6f6f4cef8a\" class=\"media block\">\n\t<div class=\"container media-center \">\n\t\t<div class=\"media\" style=\"left: 0px; min-width: 100%; max-width: 100%;\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"image \">\n\t\t\t\t\t\t\t<img decoding=\"async\" alt=\"Supply Chain Regionalization: Not a Binary Decision\" src=\"https:\/\/flex.com\/wp-content\/uploads\/2022\/11\/supply-chain-regionalization-not-a-binary-decision-0.jpg\" title=\"\">\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\n\t<script>\n\t(function () {\n\t\tlet hasRun_id_69e6f6f4cef8a = false;\n\t\tfunction updateVideoDisplay_id_69e6f6f4cef8a() {\n\t\t\tconst youtubeVideoId = \"\";\n\t\t\tconst bynderID = \"\";\n\t\t\tconst mediaType = \"image\";\n\t\t\tconst mediaVideoElement = document.getElementById('media-video-id_69e6f6f4cef8a');\n\t\t\tconst bodyClass = document.body.className || '';\n\t\t\tconst match = bodyClass.match(\/translatepress-([a-z]{2})(?:_[A-Z]{2})?\/i);\n\t\t\tconst currentLanguage = match ? match[1].toLowerCase() : 'en';\n\t\t\tconst isChineseLang = currentLanguage === 'zh';\n\t\t\tconsole.log('isChineseLang:', isChineseLang);\n\t\t\tconsole.log('Language detected:', currentLanguage);\n\t\t\tconst isValidYouTube = youtubeVideoId && \/^[A-Za-z0-9_-]{11}$\/.test(youtubeVideoId);\n\t\t\t\n\t\t\tif (!mediaVideoElement || mediaType !== \"video\") return;\n\t\t\tmediaVideoElement.innerHTML = ''; \/\/ Clear existing content\n\t\t\t\n\t\t\tlet videoSourceClass = 'fallback-error';\n\t\t\t\n\t\t\tif (isChineseLang) {\n\t\t\t\tif (bynderID) {\n\t\t\t\t\tvideoSourceClass = 'bynder';\n\t\t\t\t}\n\t\t\t} else {\n\t\t\t\tif (isValidYouTube) {\n\t\t\t\t\tvideoSourceClass = 'youtube';\n\t\t\t\t} else if (bynderID) {\n\t\t\t\t\tvideoSourceClass = 'bynder';\n\t\t\t\t}\n\t\t\t}\n\t\t\t\n\t\t\t\/\/ Apply layout class (used in SCSS)\n\t\t\tmediaVideoElement.className = 'video ' + videoSourceClass;\n\t\t\n\t\t\t\/\/ CASE: Chinese language\n\t\t\tif (isChineseLang) {\n\t\t\t\tif (bynderID) {\n\t\t\t\t\t\/\/ Load Bynder\n\t\t\t\t\tif (!document.getElementById('bynder-widgets-js')) {\n\t\t\t\t\t\tconst script = document.createElement('script');\n\t\t\t\t\t\tscript.src = 'https:\/\/d8ejoa1fys2rk.cloudfront.net\/bynder-embed\/latest\/bynder-embed.js';\n\t\t\t\t\t\tscript.id = 'bynder-widgets-js';\n\t\t\t\t\t\tscript.setAttribute('data-account-url', 'https:\/\/brandcenter.flex.com');\n\t\t\t\t\t\tscript.setAttribute('data-language', 'zh');\n\t\t\t\t\t\tdocument.body.appendChild(script);\n\t\t\t\t\t}\n\t\t\n\t\t\t\t\tconst bynderDiv = document.createElement('div');\n\t\t\t\t\tbynderDiv.id = 'bynder-id_69e6f6f4cef8a';\n\t\t\t\t\tbynderDiv.className = 'video-bynder';\n\t\t\t\t\tbynderDiv.setAttribute('data-bynder-widget', 'video-item');\n\t\t\t\t\tbynderDiv.setAttribute('data-media-id', bynderID);\n\t\t\t\t\tmediaVideoElement.appendChild(bynderDiv);\n\t\t\n\t\t\t\t\tsetTimeout(() => {\n\t\t\t\t\t\tif (typeof BynderEmbed !== 'undefined' && typeof BynderEmbed.load === 'function') {\n\t\t\t\t\t\t\tBynderEmbed.load();\n\t\t\t\t\t\t}\n\t\t\t\t\t}, 500);\n\t\t\t\t} else {\n\t\t\t\t\t\/\/ No Bynder = error (even if YouTube is valid)\n\t\t\t\t\tshowVideoError();\n\t\t\t\t}\n\t\t\n\t\t\t\/\/ CASE: Not Chinese\n\t\t\t} else {\n\t\t\t\tif (isValidYouTube) {\n\t\t\t\t\tconst iframe = document.createElement('iframe');\n\t\t\t\t\tiframe.id = 'youtube-id_69e6f6f4cef8a';\n\t\t\t\t\tiframe.className = 'video-youtube';\n\t\t\t\t\tiframe.src = 'https:\/\/www.youtube.com\/embed\/' + youtubeVideoId + '?rel=0';\n\t\t\t\t\tiframe.frameBorder = '0';\n\t\t\t\t\tiframe.playsInline = true;\n\t\t\t\t\tiframe.allow = 'encrypted-media';\n\t\t\t\t\tiframe.allowFullscreen = true;\n\t\t\t\t\tmediaVideoElement.appendChild(iframe);\n\t\t\t\t} else if (bynderID) {\n\t\t\t\t\t\/\/ Load Bynder (fallback if no YouTube)\n\t\t\t\t\tif (!document.getElementById('bynder-widgets-js')) {\n\t\t\t\t\t\tconst script = document.createElement('script');\n\t\t\t\t\t\tscript.src = 'https:\/\/d8ejoa1fys2rk.cloudfront.net\/bynder-embed\/latest\/bynder-embed.js';\n\t\t\t\t\t\tscript.id = 'bynder-widgets-js';\n\t\t\t\t\t\tscript.setAttribute('data-account-url', 'https:\/\/brandcenter.flex.com');\n\t\t\t\t\t\tscript.setAttribute('data-language', currentLanguage);\n\t\t\t\t\t\tdocument.body.appendChild(script);\n\t\t\t\t\t}\n\t\t\n\t\t\t\t\tconst bynderDiv = document.createElement('div');\n\t\t\t\t\tbynderDiv.id = 'bynder-id_69e6f6f4cef8a';\n\t\t\t\t\tbynderDiv.className = 'video-bynder';\n\t\t\t\t\tbynderDiv.setAttribute('data-bynder-widget', 'video-item');\n\t\t\t\t\tbynderDiv.setAttribute('data-media-id', bynderID);\n\t\t\t\t\tmediaVideoElement.appendChild(bynderDiv);\n\t\t\n\t\t\t\t\tsetTimeout(() => {\n\t\t\t\t\t\tif (typeof BynderEmbed !== 'undefined' && typeof BynderEmbed.load === 'function') {\n\t\t\t\t\t\t\tBynderEmbed.load();\n\t\t\t\t\t\t}\n\t\t\t\t\t}, 500);\n\t\t\t\t} else {\n\t\t\t\t\t\/\/ No valid YouTube or Bynder = error\n\t\t\t\t\tshowVideoError();\n\t\t\t\t}\n\t\t\t}\n\t\t\n\t\t\tfunction showVideoError() {\n\t\t\t\tconst errorDiv = document.createElement('div');\n\t\t\t\terrorDiv.id = 'video-error-id_69e6f6f4cef8a';\n\t\t\t\terrorDiv.className = 'video-error';\n\t\t\t\terrorDiv.innerHTML = `\n\t\t\t\t\t<div>\n\t\t\t\t\t\t<h3>Video Unavailable<\/h3>\n\t\t\t\t\t\t<p>The content you\u2019re seeking is momentarily unavailable. We appreciate your patience and look forward to sharing it with you soon.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t`;\n\t\t\t\tmediaVideoElement.appendChild(errorDiv);\n\t\t\t}\n\t\t}\n\t\t\n\t\tfunction runVideoInjection() {\n\t\t\tif (hasRun_id_69e6f6f4cef8a) return;\n\t\t\thasRun_id_69e6f6f4cef8a = true;\n\t\t\tupdateVideoDisplay_id_69e6f6f4cef8a();\n\t\t}\n\t\t\n\t\t\/\/ Always run on front-end\n\t\tif (document.readyState === 'loading') {\n\t\t\tdocument.addEventListener('DOMContentLoaded', runVideoInjection);\n\t\t} else {\n\t\t\trunVideoInjection();\n\t\t}\n\t\t\n\t\t\/\/ Also run in editor if available\n\t\tif (typeof wp !== 'undefined' && wp.domReady) {\n\t\t\twp.domReady(runVideoInjection);\n\t\t}\n\t})();\n\t<\/script>\n\t\n\t<script>\n\t\tdocument.addEventListener('DOMContentLoaded', function () {\n\t\t\t\n\t\t\t\/\/ Get the block element by ID\n\t\t\tvar blockElement = document.getElementById(\"id_69e6f6f4cef8a\");\n\t\t\tif (!blockElement) return;\n\t\n\t\t\t\/\/ Reveal the block\n\t\t\t(function ($) {\n\t\t\t\tScrollReveal().reveal(blockElement.querySelector(\".container .media\"), {origin: \"bottom\", distance: \"20px\", opacity: 1, duration: 1000});\n\t\t\t\tScrollReveal().reveal(blockElement.querySelector(\".container .content\"), {origin: \"bottom\", distance: \"20px\", opacity: 1, duration: 1000});\n\t\t\t}(jQuery));\n\t\t});\n\t<\/script>\n<\/div>\n\n<div class=\"spacer block\" style=\"height: 24px;\">\n\t<\/div>\n\n\n<p>Our ability to efficiently manufacture in one country and cost effectively sell in another, is something we take for granted these days. Better and cheaper air transport, new rail routes from China to Europe, containerized shipping and improved communications have all helped to make the world of trade thrive.<\/p>\n\n\n\n<p>The global supply chain that facilitates products to crisscross the world has been fine-tuned in some sectors to deliver almost perfect cost optimized and \u2018just-in-time\u2019 inventory management, ready to deploy on production lines within 60 minutes of arrival.<\/p>\n\n\n\n<p>Until now, the focus has been on making this machine more efficient.<\/p>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\" id=\"h-the-drivers-of-change\" style=\"font-weight:600\">The drivers of change<\/h2>\n\n\n\n<p>But with escalating geopolitical risks, narrowing parity of labor costs and the environmental impact of global supply chains, some businesses are now looking to regionalize as a practical solution to reducing risk and carbon footprint while embracing new manufacturing technologies.<\/p>\n\n\n\n<p>In the last decade the interdependence of the global model has been rattled by the financial crisis, threatened by various episodes of trade war and recently by the COVID-19 pandemic.<\/p>\n\n\n\n<p>Until now, companies made decisions purely on efficiency criteria. However, this troika of catastrophe has brought into sharp focus the global reliance on a single region. It has spurred economic nationalism and protectionism in some cases and caused exposed companies to look for greater resilience.<\/p>\n\n\n<div id=\"id-69e6f6f4da0a1\" class=\"box block content-width light-content zh \" style=\"background-color: transparent; background-image: none;\">\n\t<style>\n\t\t#id-69e6f6f4da0a1 > .container > .content {\n\t\t\tbackground-color: #005486ff;\n\t\t\tposition: relative;\n\t\t\tpadding-top: 48px;\n\t\t\tpadding-right: 60px;\n\t\t\tpadding-bottom: 48px;\n\t\t\tpadding-left: 60px;\n\t\t\tmargin-left: 0px;\n\t\t\tmargin-right: 0px;\n\t\t}\n\t\t@media (max-width: 1272px) {\n\t\t\t#id-69e6f6f4da0a1.box.block.full-width > .container > .content {\n\t\t\t\tpadding-left: 0 !important;\n\t\t\t\tpadding-right: 0 !important;\n\t\t\t\tmargin: 0 !important;\n\t\t\t}\n\t\t}\n\t\t@media (max-width: 960px) {\n\t\t\t#id-69e6f6f4da0a1 > .container > .content {\n\t\t\t\t\/\/padding-top: 24px;\n\t\t\t\tpadding-right: 30px;\n\t\t\t\t\/\/padding-bottom: 24px;\n\t\t\t\tpadding-left: 30px;\n\t\t\t}\n\t\t}\n\t<\/style>\n\t<div class=\"container\">\n\t\t<div class=\"content\">\n\t\t\t\n<div id=\"block_fece37d9b0d1fd9c0dc3feb0bc4aa87c\" class=\"quote block no-horizontal-padding light-content\">\n\t<div class=\"container\" style=\"background-color: #005486;\">\n\t\t<div class=\"quote-lines-top\"><\/div>\n\t\t<div class=\"quote-marks-top\" style=\"background-color: #005486;\">\n\t\t\t<svg viewBox=\"0 0 33 27\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"m33 20.8c0-3.9-2.9-6.3-6.4-6.3-1.1 0-1.8.3-2.1.5.1-4.3 3.3-9 8-10.1v-4.9c-6 .6-14.2 5.9-14.2 18.2 0 5.9 3.6 8.8 7.8 8.8 3.9 0 6.9-2.8 6.9-6.2zm-18.3 0c0-3.9-2.9-6.3-6.4-6.3-1.1 0-1.8.3-2.1.5.1-4.3 3.3-9 8-10.1v-4.9c-6 .6-14.2 5.9-14.2 18.2 0 5.9 3.6 8.8 7.8 8.8 3.9 0 6.9-2.8 6.9-6.2z\" fill=\"#fff\"\/><\/svg>\n\t\t<\/div>\n\t\t\n\n<p class=\"has-large-font-size\">\u201cIn the future, many companies will be careful not only to organize their procurement from a cost efficiency perspective, but to also consider the risk factors.\u201d<\/p>\n\n\n\n<p><strong>\u2014&nbsp;<a href=\"https:\/\/www.lemonde.fr\/economie\/article\/2020\/06\/04\/en-allemagne-la-crise-liee-au-coronavirus-devrait-accelerer-la-regionalisation-de-la-production_6041722_3234.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Thiess Petersen, Professor at the Viadrina University<\/a><\/strong><\/p>\n\n\n\t\t<div class=\"quote-lines-bottom\"><\/div>\n\t\t<div class=\"quote-marks-bottom\" style=\"background-color: #005486;\">\n\t\t\t<svg viewBox=\"0 0 33 27\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"m0 6.2c0 3.9 2.9 6.3 6.4 6.3 1.1 0 1.8-.3 2.1-.5-.1 4.3-3.3 9-8 10.1v4.9c6-.6 14.2-5.9 14.2-18.2 0-5.9-3.6-8.8-7.8-8.8-3.9 0-6.9 2.8-6.9 6.2zm18.3 0c0 3.9 2.9 6.3 6.4 6.3 1.1 0 1.8-.3 2.1-.5-.1 4.3-3.3 9-8 10.1v4.9c6-.6 14.2-5.9 14.2-18.2 0-5.9-3.6-8.8-7.8-8.8-3.9 0-6.9 2.8-6.9 6.2z\" fill=\"#fff\"\/><\/svg>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n<div class=\"spacer block\" style=\"height: 24px;\">\n\t<\/div>\n\n\n<p>With a focus on disruption across the value chain, contingency measures to secure supply, including localization are being put in place.<\/p>\n\n\n\n<p>A <a href=\"https:\/\/www.mckinsey.com\/capabilities\/operations\/our-insights\/future-proofing-the-supply-chain\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">recent report from the McKinsey Global institute<\/a> reminds us that on average, companies experience a disruption of one to two months in duration every 3.7 years.<\/p>\n\n\n\n<p>The focus is now on making this machine more resilient.<\/p>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\" id=\"h-rebalancing-the-global-supply-chain\" style=\"font-weight:600\">Rebalancing the global supply chain<\/h2>\n\n\n\n<p>Some, like&nbsp;<a rel=\"noreferrer noopener nofollow\" href=\"https:\/\/www.ifc.org\/wps\/wcm\/connect\/news_ext_content\/ifc_external_corporate_site\/news+and+events\/news\/insights\/interview-mohamed-a-el-erian\" target=\"_blank\">Dr Mohamed El-Erian chief economic advisor at Allianz<\/a>, claim we have entered an era of deglobalization. Others, like&nbsp;<a rel=\"noreferrer noopener nofollow\" href=\"https:\/\/www.cnbc.com\/2020\/09\/15\/krugman-stiglitz-el-erian-duflo-oneill-sachs-talk-globalization.html\" target=\"_blank\">MIT Professor Dr. Esther Duflo<\/a>, are less dramatic, but recognize that, in future, we will globalize in a more balanced way. Both agree that business will shift emphasis from efficiency to resilience. And that could cause business to consider greater regionalization of their supply chain.<\/p>\n\n\n\n<p>A <a href=\"https:\/\/www.mckinsey.com\/capabilities\/operations\/our-insights\/taking-the-pulse-of-shifting-supply-chains\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">McKinsey survey in August 2022<\/a> found that 83% percent of company leaders that the footprint resilience measures they have taken over the past two years helped them minimize the impact of supply chain disruptions in 2022.\u00a0Michael Hartung, President of Agility Solutions at Flex, has written about how a growing number of customers are turning to\u00a0<a href=\"https:\/\/flex.com\/resources\/regionalization-as-a-path-forward\" target=\"_blank\" rel=\"noreferrer noopener\">regionalization as a path forward<\/a>: \u201cWith change of every kind and scale occurring at an exponential pace, business interruptions represent the top risk for companies today and to compete, they must be willing to forge new paths in our increasingly dynamic world.\u201d<\/p>\n\n\n\n<p>Certainly, there are benefits to be had from regionalization including a more diverse range of suppliers and more opportunity to improve collaboration with them, greater proximity to customers, opportunities to improve customer service and reduced transportation risk and cost.<\/p>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\" id=\"h-geopolitical-stability\" style=\"font-weight:600\">Geopolitical stability<\/h2>\n\n\n\n<p>Europe, the birthplace of the first industrial revolution has a thriving manufacturing sector and offers many advantages as a regional manufacturing destination.<\/p>\n\n\n\n<p>Geopolitically the European Union (EU), is a collaborative of 28 countries and makes up one of the largest markets in the world with over half a billion potential consumers. Within the EU, single market goods, services, and people can flow freely, and as the <a href=\"https:\/\/eur-lex.europa.eu\/content\/summaries\/summary-09-expanded-content.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">world&#8217;s largest trading block<\/a>, the EU is ideally positioned to negotiate favorable trade agreements with the rest of the world.<\/p>\n\n\n\n<p>Longstanding members such as France, Germany, Italy and The Netherlands with well-established industrial infrastructures and attractive markets are keen to stake their claim on emerging growth opportunities like 5G, electric and autonomous vehicles and renewable energy.<\/p>\n\n\n\n<p>The dozen Central and Eastern European countries that joined the single market as part of the EU\u2019s expansion eastward since the mid 1990\u2019s including Hungary, Poland, Romania and Czech Republic can offer significant operating cost advantages and more complex value-added production as their governments innovate and compete to attract corporate investment.<\/p>\n\n\n\n<p>The European Union has been motivated to pursue greater industrial independence through initiatives in key industrial areas, notably batteries. It is likely, post pandemic, that similar initiatives to reduce European dependency on external sources will emerge. However, the rate of industrial rebalancing will depend on the scale and complexity involved and is likely to begin with assembly and vertical integration.<\/p>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\" id=\"h-sustainable-supply-chains\" style=\"font-weight:600\">Sustainable supply chains<\/h2>\n\n\n\n<p>As pandemic restrictions reduced available capacity and drove shipping costs higher, moving finished goods over long distances became more expensive. It is also becoming harder to justify from an environmental point of view.<\/p>\n\n\n\n<p>Finished goods ready for sale are heavier and take up more space as they include packaging to protect the goods while being transported. This leads to more capacity being required to move them around the world, which in turn drives higher CO2 emissions, and renders supply chains at odds with corporate sustainability objectives.<\/p>\n\n\n\n<p>Many companies are seeing the benefits of only shipping the components that are not available locally, and assembling, configuring, and packaging the final product closer to the market where it will be sold.<\/p>\n\n\n\n<p>Postponement services shorten the lead-time to the end customer, allow for final products to be customized exactly to each market or customer\u2019s order, and reduces redundant inventory. This is a more profitable approach as it reduces the total landed cost as well as being better for the environment.<\/p>\n\n\n\n<p>We\u2019ve seen business-to-consumer shipments triple and more customers availing of configure-to-order and other fulfilment services recently.<\/p>\n\n\n\n<h2 class=\"has-medium-font-size wp-block-heading\" id=\"h-an-opportunity-to-innovate\" style=\"font-weight:600\">An opportunity to innovate<\/h2>\n\n\n\n<p>One of the drivers of manufacturing\u2019s move east was the lower cost of labor. However, China\u2019s median net salary is now equal to parts of Europe, and higher than some Eastern European countries. The gap in total cost of ownership is closing and any cost advantage is fading fast.<\/p>\n\n\n\n<p>Economics Nobel Laurate Professor&nbsp;<a rel=\"noreferrer noopener nofollow\" href=\"https:\/\/www.cnbc.com\/2020\/09\/15\/krugman-stiglitz-el-erian-duflo-oneill-sachs-talk-globalization.html\" target=\"_blank\">Joseph E Stiglitz<\/a>&nbsp;from Columbia University and formerly the World Bank says that while manufacturing and supply chains may return, it doesn\u2019t mean that the same number of jobs will follow.<\/p>\n\n\n\n<p>His comments relate to the opportunities that relocation and regionalization offer to upgrade production with technologies like automation and robotics.<\/p>\n\n\n\n<p><a href=\"\/solutions-and-services\/manufacturing#industry-4-0\">Industry 4.0<\/a> is a key element of relocation projects where simulation, digitalization, high penetration of automation and additive manufacturing will feature in their design. Manufacturing simulation for example, allows production flows to be mapped and remapped until the optimum factory set up is designed. Only then will the highly efficient lines be physically constructed.<\/p>\n\n\n\n<p>As these technologies become pervasive on the factory floor, greater volumes and higher reliability can be achieved at lower unit cost and with fewer people required to manage the process.<\/p>\n\n\n\n<p>With constraints on cost and labor availability, there are some key elements for medium to large manufacturing entities to successfully regionalize operations. These include their ability to manage the complexity of the transition and ramp-up without disturbing overall production. They must manage both the basic electronic assembly and the vertical integration of plastics and metals, while understanding the specifics of manufacturing for particular markets; and they must efficiently deploy Industry 4.0 and increase localization of supplies.<\/p>\n\n\n\n<p>Regionalization is not a binary decision that calls for closing overseas plants. Instead, it should be considered as part of a business resiliency strategy that is environmentally sensitive and that helps you better serve your customers.<\/p>\n\n\n\t\t<\/div>\n\t\t<div class=\"sidebar normal-column\">\n\t\t\t\t\t\t\t\t\t<div class=\"post\">\n\t\t\t\t\t\t\t\t<a title=\"Beyond returns: Why reverse logistics is a growth strategy, not a cost center\" class=\"image\" href=\"https:\/\/flex.com\/zh\/resources\/beyond-returns-why-reverse-logistics-is-a-growth-strategy-not-a-cost-center\" target=\"_self\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" alt=\"Hallway of a warehouse with boxes stacked on shelves from floor to ceiling\" src=\"https:\/\/flex.com\/wp-content\/uploads\/2026\/03\/Beyond-returns_Featured-Image--540x304.jpg\" title=\"\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"label\">\n\t\t\t\t\t\t\tBlog\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<a title=\"Beyond returns: Why reverse logistics is a growth strategy, not a cost center\" class=\"title\" href=\"https:\/\/flex.com\/zh\/resources\/beyond-returns-why-reverse-logistics-is-a-growth-strategy-not-a-cost-center\" target=\"_self\">\n\t\t\t\t\tBeyond returns: Why reverse logistics is a growth strategy, not a cost center\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"post\">\n\t\t\t\t\t\t\t\t<a title=\"Revathi Advaithi: Transformation starts with culture\" class=\"image\" href=\"https:\/\/flex.com\/zh\/resources\/revathi-advaithi-transformation-starts-with-culture\" target=\"_self\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" alt=\"Revathi Advaithi: Transformation starts with culture\" src=\"https:\/\/flex.com\/wp-content\/uploads\/2026\/03\/RevathiForbes2026_16x9-540x304.png\" title=\"\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"label\">\n\t\t\t\t\t\t\tNews\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<a title=\"Revathi Advaithi: Transformation starts with culture\" class=\"title\" href=\"https:\/\/flex.com\/zh\/resources\/revathi-advaithi-transformation-starts-with-culture\" target=\"_self\">\n\t\t\t\t\tRevathi Advaithi: Transformation starts with culture\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"post\">\n\t\t\t\t\t\t\t\t<a title=\"Closing the power efficiency gap in AI data centers\" class=\"image\" href=\"https:\/\/flex.com\/zh\/resources\/closing-the-power-efficiency-gap-in-ai-data-centers\" target=\"_self\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" alt=\"Data Center Dynamics: Closing the power efficiency gap in AI data centers with Revathi Advaithi\" src=\"https:\/\/flex.com\/wp-content\/uploads\/2026\/01\/BeyondCapex_Flex.com-1-540x304.png\" title=\"\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"label\">\n\t\t\t\t\t\t\tNews\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t<a title=\"Closing the power efficiency gap in AI data centers\" class=\"title\" href=\"https:\/\/flex.com\/zh\/resources\/closing-the-power-efficiency-gap-in-ai-data-centers\" target=\"_self\">\n\t\t\t\t\tClosing the power efficiency gap in AI data centers\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n<div class=\"spacer block\" style=\"height: 96px;\">\n\t<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":16,"featured_media":2799,"template":"","categories":[53,45],"tags":[],"content-type":[13],"class_list":["post-1335","resource","type-resource","status-publish","has-post-thumbnail","hentry","category-leadership-insights","category-supply-chain","content-type-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/resource\/1335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/resource"}],"about":[{"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/types\/resource"}],"author":[{"embeddable":true,"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/users\/16"}],"version-history":[{"count":0,"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/resource\/1335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/media\/2799"}],"wp:attachment":[{"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/media?parent=1335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/categories?post=1335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/tags?post=1335"},{"taxonomy":"content-type","embeddable":true,"href":"https:\/\/flex.com\/zh\/wp-json\/wp\/v2\/content-type?post=1335"}],"curies":[{"name":"\u53ef\u6e7f\u6027\u7c89\u5242","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}