State of the Union - 2022

Quote,”?There’s something happening in America. Just look around and you’ll see an amazing story. The rebirth of pride that comes from stamping products “Made in America." The revitalization of American manufacturing. Companies are choosing to build new factories here, when just a few years ago, they would have gone overseas.?

The pandemic also disrupted the global supply chain. Factories close. When that happens, it takes longer to make goods and get them to the warehouses, to the stores, and prices go up.?

I think I have a better idea to fight inflation:?lower your costs, not your wages. That means to make more cars and semiconductors in America, more infrastructure and innovation in America. More goods moving faster and cheaper in America. More jobs where you can earn a good living in America. And instead of relying on foreign supply chains, let’s make it in America.”

The above lines are not written by me but it’s an excerpt from the U.S President’s State of the Union speech delivered on 03- March 2022. The message was clear that nearshoring is the way forward for the nation’s supply chain to be robust, agile, and lean.

Covid has been an eye-opener for countries to business houses to supply chain professionals, with mostly all of them caught lagging behind in their risk management and supply chain capabilities being at the back seat, historically.

China had been crowned as the global champion of being the world’s manufacturing hub since its economic reform era and had been driving the supply chain dynamics, for decades now.

The impetus of near-shoring or I should say China + 1 strategy is seriously being worked upon by supply chain folks. Looming also is the crisis of high inflation causing WPI to salary cuts and in some cases to job cuts ?

The answer to improving the economic health of the nation as part of the resilient strategy is to create jobs/opportunities for the government so that the ball of economic growth starts to roll and countries stopped engines get the push to start once again.

Stock markets predominantly drive their momentum from the sentiment which comes from the confidence laid from heads of state with concrete actionable steps to move on.

With the ongoing Ukraine crisis, the sentiment has been poor or I should say is of fear as this is a threat to the freedom and democracy of a sovereign nation. But having said this, in times of need, I believe this is one of the best steps not only for the US but for other nations to deep dive and be agile. Am sure, the criticism will come from supply chains, when I say “chains “let me say here that supply chains in their real sense mean that the world is supplying to each other via these chains and creating value chains.

You can also check on my article written the same way back in august of 2020, while we all were fighting the pandemic globally. Sharing the link below

https://www.dhirubhai.net/pulse/supply-chain-post-covid-new-normal-sumit-wadhawan/

Let me know your thoughts on this.

?