Trade war and pandemic to accelerate global supply chain restructuring

The US-China trade war and COVID-19 pandemic are set to trigger major restructuring of global supply chains, including relocation of production to cut concentration risk, shortening of supply chains and/or building of parallel ones. This will likely give rise to new demand for property, engineering and business interruption insurance in those markets that become new host locations.

Key takeaways

  • The US-trade trade war and COVID-19 pandemic will lead to major restructuring of global supply chains.
  • Governments and manufacturers are reassessing future arrangements for production to reduce vulnerabilities.
  • Restructuring will take the form of relocation and diversification of production bases, shortening and building of parallel supply chains.
  • The changes will give rise to new demand for property, engineering, business interruption and credit & surety insurance, among others.

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Economic Insights Trade war and pandemic to accelerate global supply chain restructuring

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