GENEVA, Dec. 10 (Xinhua) -- Infrastructure, energy and resources, technology, labour and skills, fiscal and regulatory policies, geopolitical landscape, environmental, and social and governance are key factors that make a country attractive for foreign investment in manufacturing and supply chains, according to a reported released Tuesday by the World Economic Forum (WEF).
The report titled "Beyond Cost: Country Readiness for Manufacturing and Supply Chains" said that ongoing geopolitical, technological and environmental disruptions are prompting companies to rethink their supply chain network design, with over 90 percent of leaders prioritizing regionalization.
Five key trends, including a move to more regionalized hubs, a transition to a digital-first model of operations, the adoption of more innovative approaches to sustainability and a deeper focus on skills and customer value, are driving the shift to regionalization.
"As global value chains undergo a profound transformation, countries and companies have a unique opportunity to redefine their competitive edge," said Kiva Allgood, head of the centre for advanced manufacturing and supply chains at the WEF.
"This report highlights how countries that deploy innovative policies and invest across these seven factors can position themselves as leaders in the evolving manufacturing landscape, driving economic growth and societal progress," she said.
Amidst this rewiring and a shift towards regionalization, companies are looking beyond the cost advantage to consider resilience, performance and sustainability, the report said.
China stands out as a global leader in infrastructure investment, underscoring its commitment to enhancing the readiness factor in infrastructure, the report said.
China leads global manufacturing and supply chains in clean energy technologies, achieving significant progress in solar, wind, EVs, and batteries, while driving down costs and advancing the global clean energy transition, Allgood told Xinhua in a recent written interview.
Increasing production readiness and attractiveness for the future of manufacturing and supply chains requires significant public sector policy design and investment in collaboration with companies, the report added. ■
