For decades, the patterns of international trade seemed to go in one direction, as goods were increasingly sourced in China and other low-cost producers. But then came the trade war starting in 2017, followed by the pandemic and, now, geopolitical tension.
In place of those patterns has come a new paradigm, as countries look to source their products in countries with friendlier trade policies or nations that are closer by. It’s called friendshoring, or nearshoring. But whatever the name, it marks a profound change for middle market businesses.
In the February issue of The Real Economy, RSM’s chief economist, Joseph Brusuelas, examines this changing landscape of trade and how it is affecting middle market businesses. A good example of the disruption to trade patterns is the attacks on Red Sea shipping, which are forcing many carriers to ship their goods around Africa, at higher cost.