Most U.S. factories in China’s manufacturing hub around Shanghai will be back at work this week, but the “severe” shortage of workers due to the coronavirus will hit production and global supply chains.
Analyst Insight: The trade battle between the U.S. and China has played a major role in causing strategic shifts within supply chains, with U.S. businesses reducing their Chinese manufacturing presence in order to avoid tariffs and rising production costs in China. The trend is expected to continue into 2020, with tensions between the U.S. and China remaining high, and U.S. businesses looking to further reduce costs.
Forecasts indicate slower growth for global trade this year, but there are opportunities for shippers and providers of logistics and transportation services — especially in emerging countries such as Vietnam, India and the Philippines.
Analyst Insight: Never have tariffs held such a prominent place in the day-to-day global operations of businesses. The current U.S. administration has levied millions of dollars of tariffs on U.S. businesses, regardless of size. As a result, any company that imports or exports is experiencing increased costs to make, move or sell their products. And companies are making significant investments in their global supply chains to mitigate the collateral damage that the trade wars are wreaking.
Unlike other big developing Asian nations such as Indonesia or India, which depend more on domestic demand to fuel their growth, Vietnam is particularly vulnerable to geopolitical risks because of its reliance on trade.
It took five decades for global elites to put climate change at the center of the World Economic Forum, and this year — with rising temperatures and cutting emissions finally dominating the agenda — it seemed almost no one could stop talking about it.