Production moves westward: is it goodbye to China?

Go West. The new routes of the production chain look towards the West, with a diversification that no longer sees China as the sole supplier: this is how Karl Haberkorn, UPS Europe West District President, told Sky Tg24 Business. Watch the video

First the Covid-19 pandemic, and then the war in Ukraine, led many European companies to review their supply chains, seeking greater diversification. It is certainly not an easy process, also due to the increase in production costs over the last year and a half. But important changes are underway, explains to Sky Tg24 Business Karl Haberkorn, President Europe West District of UPS. “Covid-19 and the Russian invasion of Ukraine have disrupted the supply chains of nations, leading Western policy makers to redesign new routes in the production chain,” he says. US Treasury Secretary Janet Yellen has defined this process as ‘friendshoring’, i.e. increasingly frequent exchanges between countries considered friends. “Things are improving on the price front – adds Haberkorn – despite some episodes of volatility. China is no longer the only supplier and it is certainly a good thing, given that differentiating brings greater effectiveness and a reduction in costs”.

Review here the episode of Sky Tg24 Business of 12 January withLisa Jucca (European Business editor of Reuters) e Karl Haberkorn (President Europe west district of UPS)