Deglobalisation: the great economic reset?

Since March, companies large and small have been working hard not only to survive but to build their financial resilience. COVID-19 has certainly presented us with a unique opportunity to review the supply chain and business models.

Building resilience

The latest PWC report confirms that a global growth slowdown and weaker demand for traded goods and services are strengthening the deglobalisation trend.

Can this push to “repatriate” key industries save the UK economy by reducing our overdependence on low-cost manufacturing from outside the European borders?

While it may not be practically or economically realistic to become self-sufficient for all groups of products, reshoring production will help increase supply chain resilience.

Green shoots of UK economic recovery

The PMI index indicates the economy is likely to return to growth in the third quarter, after a record contraction in Q2. It was 50.1 for June in manufacturing, up from 40.7 in May, following a record low of 32.6 in April.

With the reopening of services, and the state promise to protect the job market with new opportunities, let’s hope for a faster than expected economic bounce back.

If your business is faced with financial difficulty, don’t put it off. Seeking help earlier can make a difference between business survival and business closure. If you have any questions about business rescue procedures, need help with understanding your options or planning your future, please contact us for impartial advice on 0800 118 2948.

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