The great rewiring of global supply chains

For a generation, the logic of supply chains was simple: find the cheapest source, consolidate, and ship. The system was exquisitely efficient, and exquisitely fragile, as a series of disruptions made clear.

The rewiring now under way is not a retreat from trade but a rebalancing. Companies are asking what resilience costs, and whether they are willing to pay it, before the next shock decides for them.

Nearshoring, duplication, and larger inventories all carry a price that shows up at the checkout. The question is whether the public, having felt the cost of fragility, will accept the cost of resilience.

The supply chain of the future will be slower, more expensive, and more durable than the one it replaces. Whether that is a loss or a gain depends on what we decide to value.