Global corporations are in the midst of a wave of restructuring their chain operations, putting India, Europe and North America ahead of classic powerhouse China, as destination leaders plan to move production to 2024 and beyond, according to a report by Agility, the Kuwait-based company. Supply chain service provider.
The insight comes from the company’s 15th Annual Agility Emerging Markets Logistics Index, a survey of 830 logistics leaders that provides insights into industry sentiment and a rating of the world’s 50 most sensible emerging markets.
The study showed that 40% of respondents expect their companies to be less dependent on China within five years. The main factors influencing risk decisions in China include: the difficulty of doing business; U. S. -China trade frictions; a slowing economy; and the harshness of China’s COVID restrictions.
As far as global trends are concerned, the survey found that shipping and logistics prices that triggered the COVID pandemic and its aftermath continue to rise, albeit at a slower pace. And more than 63% of respondents say their corporations continue to redesign their supply chains by expanding production to multiple locations or offshoring to domestic markets and neighboring countries. China, the world’s largest producer, will be hardest hit: 37. 4% of industry professionals say they plan to move their production/sourcing out of China or reduce their investments there.
As they look for new places to reorient their supply chain and production operations, many corporations are heading in a new direction: Africa. According to a recent survey, only about 62% of global logistics professionals say their corporations are making additional plans or initial investments in Africa, making expansion plans despite considerations about emerging market risks. “This is the greatest optimism we’ve noticed about Africa in the 15 years of the Index’s existence,” Tarek Sultan, vice president of Agility, said in a statement. The population will double by 2050, when one in four people on the planet will be African. International corporations know the time is right for Africa: they want to invest, identify their brands, and expand the next generation of African skills if they achieve the desire to ride the next wave of growth.
Overall, China and India rank first and second in the 50-country index rankings. But as a region, Africa had 14 other countries in the ranking: Egypt (20), Morocco (22), South Africa (24) and Kenya. (25) were the countries with the highest productivity, followed by Ghana (31), Nigeria (36), Tunisia (37), Tanzania (41), Algeria (42), Uganda (43), Ethiopia (45), Mozambique (46). ), Angola (47) and Lithrougha (50). Egypt has the highest-ranked domestic logistics opportunities in Africa: 13th in this category; South Africa (15th) leads Africa in foreign logistics; Morocco (12) has the most productive industrial base in Africa; and Kenya (9) is the country with the highest digital position in Africa.
Agility supplies supply chain and infrastructure with 45,000 workers on six continents. He manages the aviation company Menzies Aviation; global fuel logistics company Tristar; logistics park operator in the Middle East, South Asia and Africa Agility Logistics Parks; and an advertising real estate company to be built in a mega shopping mall in the United Arab Emirates, UPAC. The company also offers customs digitization, remote site infrastructure, defense and governance, as well as e-commerce and virtual logistics.