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Currently 47 percent, large companies from Europe and the United States have already invested in reshoring, that is, moving production From third countries to the local market – According to the report “Manufacturing Revival: Strategies for Remanufacturing in Europe and the United States” published on Tuesday. The report was based on research conducted in February 2024. A survey of 1,300 managers working in organizations with annual revenues exceeding one billion US dollars. In the United States of America, Great Britain and Continental EuropeIncluding France, Germany and Italy.
It has been observed in both the United States and Europe Investments in building or modernizing production plants are also increasing – mentioned. The report’s authors noted that the goal of these activities is to increase the resilience of supply chains in the face of potential disruptions.
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The report notes that in European and American companies from many industries (including, among others, the production of consumer goods, the energy and chemical industries and the industrial machinery and equipment sector) Cumulative investments in remanufacturing are expected to increase by 18% over the next three years. Compared to the past three years, it will reach $3.4 trillion. I add that $1.4 trillion are American investments, and the remaining $2 trillion are European investments.
Shortage of personnel and raw materials
“Most of the funds are directed to initiatives within the local market and represent 54% of cumulative investments over the past three years. However, there are obstacles such as Shortage of personnel or shortage of raw materials, It is likely to lead to an increase in short-term investments, especially in the area of near-term transportation and so-called “friendship formation, that is, focusing the supply chain network on countries that are considered political and economic allies,” the press release said.
As reported, 72 percent of companies surveyed are currently developing a remanufacturing strategy or have already implemented one. For nearly 70 percent of the companies surveyed, the main reason for such action is necessity Increase supply chain flexibility, adaptability and rapid response to operational disruptions – Added. The relevance of this was particularly demonstrated by the Covid-19 pandemic, when for example a shortage of electronic components paralyzed many industries (such as the automotive industry) – it was pointed out.
The study shows that 55 percent of companies assume this Reindustrialization will help them achieve climate goals. This may be related to a potential carbon footprint tax in the EU. 63 percent considers local production to be of strategic importance to ensure national security, and 62 percent expects the importance of remanufacturing to be in other strategic sectors such as Electric cars, medicines, vaccines, and semiconductors will increase in the future.
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