Market Watch: Getting out of China will cost U.S. and European firms $1 trillion, says BofA
Thu August, 2020, Age: 2 years
Bank of American analysts said that even before the pandemic, its survey in January of global analysts confirmed that the trend of globalization to localization was “real and structural.” Six months later, COVID-19 has “turned tectonic shifts to visible fault lines,” the bank’s analysts said.
The survey of the bank’s global analysts found that companies in over 80% of global sectors experienced supply chain disruptions during the pandemic, prompting three-quarters to widen the scope of their re-shoring plans. The cost for U.S. and European companies to move manufacturing out of China could reach $1 trillion over five years.