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Authors:
Ilaria Maselli
Klaas de Vries
Abdul Erumban
Ataman Ozyildirim
Erik Lundh
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Publication Date:
February 2019
Manufacturing producers are shifting away from foreign suppliers of inputs toward more local ones, choosing to “go local.” Data confirms the trend is a clear departure from the heydays of outsourcing: the share of local value added is now increasing in mature economies. The decision to go local is broad-based across industries and countries. Companies that shift towards local suppliers are better positioned to achieve mass customization and respond to changing customer tastes. The shift is also a response to societal concerns over sustainability.
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