Smart proactive companies are moving supply chains from global to local - or regional at a minimum. Yet the best companies are doing that while also focusing on resiliency. Our best clients are getting ahead of the pack with proactive strategies to move towards local with resiliency.
Although it starts with a depressing state of affairs for manufacturers, there is vast opportunity on the horizon. Manufacturing investments have been pouring into the U.S. and the three pillars of economic success are trending positive. Companies must prepare to scale and for success.
Geopolitics have been driving significant changes in supply chains. For example, stemming from the China threat, GM has just announced that it wants parts makers to pull supply chains from China. As supply chains evolve, it creates an expansive effect. As companies evaluate supply chain network changes, there are many items to take into account
Companies are only as strong as the weakest link in their supply chain. If you dig further into your supply chain, it is likely you will find dependencies on rare earth minerals. Read about strategies to scale rare earth production rapidly.
The economy has a distinct impact on manufacturing. Although U.S. manufacturing has gone sharply down with offshoring for lower wages, less regulations, and fewer hurdles, there remains a base crux of manufacturing might that is turning into a renaissance with favorable tax, tariff and interest rate policies.
In step change progress to depending on China (who has been unreliable in supplying critical minerals), a strategic partnership has been developed to replace this dependence for antibiotics. Not many companies can take over manufacturing of extended supply chains and scale up adequately. Thus, strategic partnerships can provide the resources and investments to scale and succeed.
The Southern California ports had a record-breaking month as the tariffs smoothed out and companies started preparing for peak season. As supply chains evolve significantly over the next several years, logistics systems will evolve. Companies must think ahead, predictively evolve their networks, modernize and upgrade their facilities, processes, and technologies.
A manufacturing boom is on its way. Although it might not appear so according to clients' SIOP (Sales Inventory Operations Planning) models with weaker clients' backlogs and hesitant customers, we have no doubt it is imminent.
The U.S. unveiled its first AI Action Plan with the "Winning the AI Race" All-In Summit. The AI Action Plan focuses on a few core elements to ensure the U.S. leads the world with artificial intelligence.
It is past time to ensure your supply chain is ready for growth. As companies scale up, shortages and lead times are extending. Develop plans to take advantage of the opportunities by preparing your supply chain to scale.
