The brief
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For three decades, the dominant question in manufacturing location decisions was simple: where is it cheapest. That question has not disappeared, but it now competes with a second one that used to be an afterthought — where is it resilient.
A slightly more expensive factory two time zones closer to the end customer is increasingly winning against a cheaper option on the other side of a strait that has become a geopolitical flashpoint.
The companies that adjusted this calculation earliest are the ones least surprised by recent disruptions.
Cost is no longer the only variable
A slightly more expensive factory in a stable jurisdiction is increasingly winning against a cheaper one in a flashpoint region.
What this means in practice
Resilience has become a line item in the location decision, not an afterthought.
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