Friendshoring – learn about the new strategy of countries!
One of the answers to the problems with supply chains in the world is the so-called friendshoring. Find out what it is and what benefits it gives!
Friendshoring – a new strategy for countries
Russia’s military aggression against Ukraine and the pandemic lockdown have proven how geopolitical events affect the functioning of global business, logistics and supply chains. In recent years, challenges have emerged that representatives of countries around the world are trying to deal with in various ways. According to CBRE experts, one of the best methods of trade support may be the so-called friendshoring. We explain what it is!
What is friendshoring?
Friendshoring is a term from English, meaning in free translation “moving the production to friends”. It means creating interconnected supply networks within friendly countries, i.e. cooperating with each other politically and militarily. This solution is to help the countries of Central and Eastern Europe (including Poland!), because they are reliable partners of the European Union and NATO.
How does friendshoring mitigate the effects of supply chain disruptions?
Creating self-sufficient supply chains within a single country is difficult, and in most cases impossible. This can be seen on the example of Russia, which after the introduction of sanctions related to its armed aggression against Ukraine, immediately fell into economic collapse.
Friendshoring is to shift the focus from global connections to more “regional” ones. Cooperation between similar countries allows to maintain a profitable diversification of supply sources, and at the same time minimizes the risk of possible disruptions related to m.in long distance or differences in the economic, legislative and political fields.
In Europe, this phenomenon may also lead to gradual independence from Asian producers. Recently, not only have there been supply problems, but it is also important that they offer products that are often morally and environmentally questionable.
After a thoughtful introduction of friendshoring, you can work out solutions that will bring many benefits. They will be safer, more profitable, less harmful to the environment, conducive to the development of local economies, etc.