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Global Sourcing Spotlight: The New Landscape of Manufacturing 

For decades, manufacturing followed a familiar pattern: design in the West, production in China, and distribution elsewhere. That map no longer works. The shocks of the past five years—the pandemic shutdowns, trade wars, logistics meltdowns, and geopolitical uncertainty—have redrawn the boundaries of global manufacturing. The question every OEM is asking isn’t “How cheap can we make it”? but “How certain are we that we can obtain it?” We are witnessing a seismic shift in the landscape of making things. The work hasn’t disappeared; it’s just moving.

When COVID-19 hit, the world learned that efficiency without resilience is a house of cards. The just-in-time model became just too late. A single lockdown in Shenzhen or a ship stuck in the Suez Canal could halt production lines on another continent. Then came tariffs, with additional costs and complexity to an already unstable system. Global supply chains are no longer optimized purely for cost, but for continuity. Companies now value redundancy over concentration. Instead of a single supplier in one country, they’re building networks across regions—each capable of stepping in when there is a disruption elsewhere. The best global sourcing strategies today don’t chase the lowest quote; they build the strongest chain.

A few years ago, every sourcing executive was talking about China-Plus-One—keeping core capacity in China but adding an alternative source elsewhere. That strategy worked briefly, but the world has moved faster than the slogan. Now, it’s China-Plus-Many. Smart OEMs are creating multi-node supply ecosystems that span Asia, North America, and Eastern Europe. Instead of a single backup, they’re building a web of trusted partners. China remains the world’s largest and most capable manufacturing base, but it’s no longer the only solution. Rising costs, shifting policies, and tightening export controls mean diversification is no longer optional. The companies succeeding today have flexible supply networks that can pivot when conditions change.

If your entire supply chain fits on one map pin, you invite risk. Three countries stand out as anchors in this landscape:

Mexico is experiencing a renaissance. Proximity to the U.S. market, favorable trade agreements, and an increasingly skilled workforce make it the centerpiece of nearshoring. Lead times shrink from weeks to days, and logistics costs are dramatically lower. The North American supply chain is being rewritten, with Mexico as its critical link.

Vietnam has become a powerhouse in Southeast Asia. Its political stability, disciplined workforce, and expanding infrastructure make it a favorite for electronics, textiles, and assembly operations. Global giants from Apple to Samsung are deepening their presence there as part of their core strategies.

India is fulfilling its long-promised potential. With major investments in infrastructure, a massive domestic market, and government incentives through its Make in India  initiative, it has become a serious player not just for volume manufacturing but also for design and innovation.

Each region offers a unique blend of cost, capability, and stability. Together, they represent a distribution manufacturing model that’s more resilient than the centralized past.

There’s a lot of noise around reshoring—bringing manufacturing back home. While some of that is real, much of it is about regional balancing rather than relocation. Few companies can fully reshore without massive cost or capability loss. What’s really happening is friend-shoring—moving production to politically aligned, trusted nations. It’s not nationalism; it’s pragmatism. OEMs are asking: Who can we rely on if global tensions rise? Who shares our standards for quality, IP protection, and sustainability? That’s why trade alliances and shared values matter as much as price per unit. We make supply chain decisions around geopolitics, not just spreadsheets. Reliability and relationships have become strategic assets. You can’t build a dependable supply on unstable ground.

Diversification sounds good in theory, but managing multiple suppliers across regions can create variation in quality, communication, and delivery. The key is in disciplined qualification and continuous visibility. OEMs must choose partners that share the same process rigor, documentation standards, and communication culture. Shared ERP systems, digital twins, and real-time dashboards make it possible to monitor quality and progress from anywhere, but technology alone isn’t enough. Trust built through time and transparency remains the cornerstone of global sourcing. Diversification doesn’t mean lowering standards; it means raising your management game. The companies that succeed are those that can replicate excellence across borders without compromise.

The global sourcing map used to be simple: cheap labor here, finished goods there. Today’s map is dynamic, multi-centered, and strategic. It’s built on a balance between cost and control, distance and speed, and capability and confidence. Those who succeed stop reacting and intentionally redesign their supply chains. They view sourcing as building resilience, agility, and reliability into their business’s DNA. This new landscape rewards flexibility, foresight, and relationships built on mutual investment.

The map has changed, and so should your sourcing strategy. Don’t cling to where the work used to be. Go where it’s going. Sourcing isn’t just about where you build. Build smartly.Companies that adapt to this new manufacturing landscape think globally, build regionally, and manage locally, and will define the next generation of industry leadership.

Bob Duke is president of the Global Sourcing Division at American Standard Circuits.