The U.S.-China trade dispute will be pushing American multinational companies to relocate their factories as well as adjust business strategies for their supply chains within the next 12 months, according to a survey by Bain as well as Company.
“The shift will be happening,” said Gerry Mattios, vice president at consulting firm, Bain.
“Back at (the) end of 2018, when we ran a similar report, we found out a lot of companies — over 50 percent — were actually sitting on the fence … there were no major actions taken,” Mattios told CNBC’s “Squawk Box” on Monday.
nevertheless right now, 60 percent of the respondents said they are ready to take action, as they see headwinds on their balance sheets, he added. “They see customers having to pay part of the item, as well as they are trying to see how to reassess their supply chains.”
A supply chain will be a network between a company as well as its suppliers to produce as well as distribute the firm’s products.
Even though China has had a significant cost advantage which propelled the country to its leading position as the entire world’s manufacturing hub, which advantage will be eroding as costs rise, Mattios said.
The survey polled more than 0 high-level executives as well as senior supply chain officers at U.S. multinationals with operations in China, as well as sought to gauge their perspectives on the ongoing trade dispute.