Forget Nearshoring. "Deshoring" Will Rewrite Global Supply Chains.

A new business reality

The world of supply chains has many buzzwords: friendshoring, nearshoring, reshoring, etc.

Many of them emerged during the pandemic, as the West became clear-eyed about its overreliance on others for critical goods, namely China. But, post-pandemic, it has been geopolitics keeping these supply chain strategies alive, as fears rise that global trade could be weaponized if nations clash on the world stage.

Now, geopolitics has shifted into a higher gear, unleashing disruption on global supply chains that few saw coming.

One of the most significant was Israel’s (alleged) move against Hezbollah, where the production of pagers, solar panels, and radios headed to Lebanon, was effectively hijacked, as the devices had small explosives planted in them, and were then routed to Hezbollah operatives.

Companies have a new responsibility to their supply chains.

Such bold geopolitics, along with the reelection of Donald Trump as US president, point to a new supply chain strategy transformation beginning, what I refer to as “deshoring.”¹

This represents a new overhaul in global supply chains, underpinned by geopolitics.

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