“Friendshoring”: The New Trend in Supply Chains

Global supply chains have experienced significant disruption in recent years. The trade war between the United States and China, the pandemic, and the ongoing Russian invasion of Ukraine have all contributed to supply shortages and rising raw material prices.

On this topic, Professor Fabio Marazzi, Senior Managing Partner at BMV, and Andrea Noris, Senior Associate at BMV, contributed an article to the ISPI (Italian Institute for International Political Studies) newsletter entitled “Friendshoring: Building Trusted Supply Chains.”

The article discusses how a return to international relations resembling those of the Cold War era may support nearshoring and likely encourage friendshoring. This concept refers to relocating production from countries considered unreliable or not aligned with Western values to countries that share similar approaches to international relations and economic cooperation.

Despite policies promoting reshoring and friendshoring, both the European Union and the United States are also seeking to increase domestic production, particularly in the agricultural sector. These objectives are ambitious, but recent global disruptions, including the Russia–Ukraine crisis, have highlighted the need to replace part of foreign imports with local production.

To read the full article, click here.

For further information, please contact Paula Vega at: p.vega@bmvinternational.com.