Recent research indicates that an increasing number of companies globally are restructuring their supply chains, with over a third planning to move production or sourcing from China within the next five years. The 2024 Agility Emerging Markets Logistics Index shows that 63% of logistics industry professionals are dispersing production to multiple locations or shifting to domestic markets or nearby countries. This has resulted in reduced investments in China by 37.4% of respondents. Reasons for this include difficulties in doing business in China, trade wars, and strict anti-COVID measures.
India is increasingly becoming a significant investment destination, potentially even more than China in the future. While China still ranks first in the index, India is seen as number two. The industry is also focusing on Africa for new investments, while other regions such as India, Europe, and North America are also mentioned for planned activities such as moving production. The prospects of a global recession are present, mainly due to factors such as the pandemic, the war in Ukraine, high inflation, and geopolitical tensions.
Source: Furniture Today
Agility 2024 Emerging Markets Logistics Index: