One result of the coronavirus crisis looks likely to be a remaking of global supply chains. An increased focus from policymakers and executives on security of supply, amid rising tensions between China and the rest of the world, should lead to the creation of better-connected local supply hubs. But investors should take note: not all companies are best placed for this transition.
Greater automation and analytics will help to improve visibility and control over supply, as well as keeping workers safe. Investment opportunities are likely to be found in technology groups and leading adopters — companies that manage this change efficiently and, as a result, become more resilient and agile.
The pandemic has highlighted the costs of being dependent on only a few suppliers. Countless stories have called attention to the shortage of masks and protective clothing for healthcare workers.