This briefing looks at the impacts of the COVID pandemic on Canadian businesses’ supply chains and the trend toward reshoring.
Bringing Them Home: Reshoring Supply Chains Is Not a Panacea
Bringing Them Home: Reshoring Supply Chains Is Not a Panacea
Canadian Economic Analysis
Global Economic Analysis
Industry Economic Analysis
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- Responding to the Global Commerce Centre’s recent trade survey, many organizations said they had shifted their supply chains more toward domestic suppliers during the pandemic.
- An even greater share of survey respondents said they are planning to source more inputs from local suppliers after the pandemic is over.
- In terms of disruptions, COVID-19 containment measures caused the most problems when sourcing inputs from China, followed by inputs from other parts of Asia and the Americas (excluding Canada and the United States).
- The pandemic also disrupted the supply chains of organizations sourcing inputs domestically. As such, bringing home supply chains is no guarantee of supply chain security and resiliency.
- Not all industries were affected equally. Health care services stand out as one of the most affected industries. High-value services, such as professional, financial, and information technology services, were among the least affected.
- A firm can improve the robustness and resiliency of its supply chain by better preparing for disruptions. This can include a combination of approaches. For example, a firm can develop a network of trusted suppliers. It can also use digital technologies for a more agile management of supply chains and stress tests to help make more informed decisions.
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