
Jayden Daniels dazzles again as Commanders clinch a playoff spot by beating Falcons 30-24 in OTHeat listening to Jimmy Butler trade offers with three teams on his wish listNearly two-thirds of manufacturers are adopting a "power-of-two" strategy, ensuring the majority of their direct spending is sourced from two separate regions. Attractiveness of low-cost manufacturing hubs such as India and Brazil for FDI drops by 15%. LONDON , Dec. 10, 2024 /PRNewswire/ -- The World Economic Forum , in collaboration with global consultancy Kearney , has today released its latest report, Beyond Cost: Country Readiness for Manufacturing and Supply Chains , highlighting that more than 90% of manufacturing executives are prioritizing regional supply chain strategies. Firms have learned to adapt to recent supply disruptions (such as Covid and the Suez Canal blockage) in recent years, but the industrial landscape remains unsettled by a mix of geopolitical and environmental factors, including a year of numerous elections across the globe and the resulting impact of potential protectionist tariffs. As a result, regionalization is becoming a key tactic to safeguard against global trade disruptions. The findings from more than 300 global operations executives show that nearly two-thirds of manufacturers are adopting a "power-of-two" strategy, having the majority of their spend sourced across two separate regions. This shift moves beyond the traditional focus on best cost to include holistic factors such as infrastructure, technology, skilled labor, and sustainability. Foreign direct investment (FDI) in low-cost manufacturing declines as priorities shift The shift from "best-cost" to "value-driven" investment strategies is also playing a key role in foreign direct investment (FDI) trends in manufacturing hubs, with traditional low-cost regions losing their appeal. "Adapter" countries such as Brazil and India , characterized by a GDP per capita that sits below the global average and with a limited contribution of the manufacturing sector to GDP, have experienced a 15% decline in FDI attractiveness as cheap labor alone is no longer enough to sustain long-term investment. In contrast, "connectors" such as Bangladesh and Mexico which (like adapters) have historically traded on their best-cost status but whose contribution of manufacturing to GDP is higher, have seen the appeal of their inward investment improve by 14%. "Scalers" like Singapore and Ireland have, on average, seen steady FDI growth, up 2% thanks to strong infrastructure and favorable regulatory environments. Similarly, "convergers" such as the United States and Denmark have also seen an average 2% increase in FDI, attracting long-term investment by focusing on factors like sustainability and infrastructure. This shift in FDI confidence aligns with actual FDI changes over the same period. Countries with higher GDP per capita have experienced more significant FDI growth, regardless of the manufacturing sector's contribution to GDP. "Convergers" such as the US and Denmark experienced an average 295% rise in FDI in the past 10 years, while "scalers" like Singapore and Ireland saw an average 215% increase. On the lower end, "connectors" like Mexico and Bangladesh saw FDI growth of an average 144%, double that of "adapters" such as India and Brazil , which recorded just an average 74% increase. Per Kristian Hong , Partner and Americas Strategic Operations and Performance Lead, Kearney, commented: "With over 2 billion voters across 50 countries having cast ballots in 2024, 2025 will be a critical year for every company reliant on cross-border operations. "Plans to accelerate a sweeping range of policies, intended to reset global trade through tariffs and export controls, will require businesses to reassess their network manufacturing footprint beyond merely low-cost alone. A more complex and nuanced decision-making process is needed, one that considers flexibility and a country's ability to deliver environmental change in line with global strategic priorities." Kiva Allgood, Head, Centre for Advanced Manufacturing and Supply Chains, World Economic Forum added: "As global value chains undergo a profound transformation, countries and companies have a unique opportunity to redefine their competitive edge. "This report highlights how countries that deploy innovative policies and invest across these seven factors can position themselves as leaders in the evolving manufacturing landscape, driving economic growth and societal progress." The World Economic Forum and Kearney report identifies seven critical readiness factors that drive private sector decision-making and shape the attractiveness of a country amid the global rewiring of supply chains. These factors serve as a guide for policymakers and industries, covering: Infrastructure Resources and energy Technology Labor and skills Fiscal and regulatory Geopolitical landscape Environmental, social, and governance Read the full report here . Notes to editor To understand how businesses are adapting to the changing global value chain landscape, the World Economic Forum, in collaboration with Kearney, surveyed over 300 global operations executives and conducted 60 consultations on strategies for future-proofing supply chains. This paper evaluates countries' readiness for next-generation manufacturing across seven key factors, highlighting that attractiveness for manufacturing investment now goes beyond just cost. About the World Economic Forum The World Economic Forum, committed to improving the state of the world, is the International Organization for Public-Private Cooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas. ( www.weforum.org ). About Kearney Kearney is a leading global management consulting firm. For nearly 100 years, we have been a trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we work alongside our clients to regenerate their businesses to create a future that works for everyone. Press contact (UK) Tom Stewart-Walvin Rostrum – PR consultants to Kearney [email protected] [email protected] Press contact (US) Meir Kahtan MKPR [email protected] +1 917-864-0800 SOURCE Kearney
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The FTC argued the proposed tie-up violated US antitrust law and a divestiture wouldn't help consumers.