Second, how this reconfiguration actually occurs is itself changing, with some signs of more re-shoring and near-shoring rather than the offshoring which is what benefits our regional economies.
Over the last three decades of rapid globalisation, global corporations created new supply chains by breaking down production processes and allocating slices of production to locations which could produce them most efficiently. This helped to create production networks that spanned many countries, with a particular product often crossing borders several times before the final good reached the consumer. China was at the centre of this network, with Southeast Asia playing an important role as well. Now, a confluence of factors is helping to reconfigure these supply chains. The resulting relocation of production is likely to be an important factor shaping the Southeast Asian region’s economic prospects in coming years.
Several themes stand out as we survey recent trends in this reconfiguration. First, the process seems to be speeding up.
