Edmond de Rothschild Megatrends | Cybersecurity

Reshoring remains a major issue for governments seeking to protect themselves against the production chain disruptions having occurred during the COVID crisis. But in the last few months manufacturing has been affected by backlash against this issue. Once supply was restored at the end of 2021, sectors dependent on products such as semi-conductors massively increased their orders, swelling their stocks to protect themselves against a further failure to deliver. At the start of the year, as post-COVID residual demand faded and inflation reduced final demand, these companies were more likely to reduce their inventories rather than maintain their orders.

This resulted in lower-than-expected activity for semiconductor producers. Similarly, some of the projects of industrial robot suppliers have been postponed. Fortunately, this trend seems to be coming to an end, heralding an upturn in activity in these cutting-edge industries, with orders expected to pick up again in early 2024. The upturn will also be underpinned by government support – particularly at European level – for these sectors, which are vital for securing supplies.

Edmond de Rothschild CIO Office – December 2023