POST #8 – Vulnerabilities in industries with concentrated production
Vulnerabilities in Industries with Concentrated Production
The coronavirus has exposed the vulnerabilities of industries with labor-intensive production highly concentrated in key locations – for example, electronics manufacturing in China. #PostCovid19, some companies may further decentralize operations, simultaneously seeking geographic diversity and cheaper labor pools. One consequence of a rush to open new facilities could be a reversion to prioritizing cost over the labor standards that have shaped current supply chains.
Electronics manufacturing is concentrated in China - but in some firms more than others
POST #8 – Footnotes
The chart shows the top 20 largest global electronics manufacturers (by workforce size) that were constituents of the MSCI ACWI Index as of Mar. 14, 2020. Figures for location of workforce are based on company self-reporting of their workforce in mainland China, Hong Kong and Macau. Where this data was not available, figures were estimated based on the percentage of reported operations or facilities in mainland China, Hong Kong and Macau.
Source: MSCI ESG Research LLC