U.S and Mexico are pegged to be big winners as companies move away from China

The appetite for continued exposure to China continues to change among North American companies, with nearly three-quarters of companies in a recent AlixPartners’ survey already starting to reduce their exposure, and more than half planning to reduce exposure next year by more than 10%.

The results of part of a global survey conducted by AlixPartners with supply chain professionals. The firm broke down results by region. The North American results included responses from 100 executives in five industries, with 60% working for companies that have reported at least $5 billion sales.

The results found that companies are generally targeting a 40% reduction in their share of sourcing from China to reduce exposure, with the U.S. (plus 30%) and Mexico (plus 10%) expected to see the biggest gains. While the effort remains in the early stages, AlixPartners found that companies are making decisions on make vs. buy strategies and investing in supplier development, logistics and distribution footprint changes, and global procurement cost modeling.

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