Introduction According to a World Economic Forum and Kearney survey involving over 300 global operations executives and 60 consultations (included in From Disruption to Opportunity: Strategies for Rewiring Global Value Chains), over 90% of leaders are prioritizing regionalization, while close to two- thirds are planning to have a majority of their direct spending qualified from a second source in a second region. With the global operating environment projected to become increasingly volatile, safeguarding operations now involves strengthening the resilience of one’s geographical footprint. Where in the past, an organization’s footprint was primarily driven by cost, it now reflects a more holistic approach that addresses five key trends shaping the future of global value chains. These trends include: a shift 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. Such developments continue to influence significant shifts in global value chains, prompting companies to explore new geographies, rethink network designs and balance trade-offs between cost, performance, resilience and sustainability. To successfully navigate these five trends, it’s crucial for manufacturers and policy-makers to work together at a country and regional level. As such, the insights from this white paper are intended to elicit deeper exploration into the characteristics that make a country a favourable destination for next-generation manufacturing and supply chains over the next decade. In the next chapters, the paper will delve into country-level readiness factors underpinned by a set of indices from globally recognized data sources, as well as the role of public-sector investment and industrial policies.Five key trends are prompting industrial companies to holistically rethink their network design and geographical footprint. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 5

Beyond Cost 2024