What a Manufacturing Shift Away From China Could Mean for Trucking

The coronavirus pandemic and an ongoing trade war with the United States have accelerated the threat China faces of businesses moving manufacturing operations elsewhere, but the effects those potential shifts have on U.S. trucking operations depends largely on where, ultimately, companies choose to move.

Gartner in survey results released in June found that 33% of global supply chain leaders had either moved sourcing and manufacturing activities out of China or planned to do so in the next two to three years. The survey involved 260 participants and was conducted between February and March.

“The localization of goods from China to, let’s say, the U.S. and Mexico is one scenario,” Glenn Koepke, vice president of network enablement at FourKites, told Transport Topics. “The second scenario is out of China and into other lower-cost countries, which specifically would be Southeast Asia.”