Friedberg: Companies will vertically integrate supply chains over next two decades
David Friedberg · E72: Impact of sanctions, deglobalization, food shortage risks, macroeconomic outlook and more · Mar 19, 2022 · at 32:34
David Friedberg analyzes corporate reaction to pandemic and war-induced supply chain disruptions, predicting a long-term shift toward supply chain redundancy.
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“And now I think the big trend for the next decade or two, everyone's going to have like a institutional memory of this. And you're going to see companies that are going to start to vertically integrate supply chains. They're going to vertically integrate their manufacturing. We're going to see a lot of businesses make what traditionally would have been really quote unquote bad capex decisions and bad investment decisions. And they're gonna say, you know what, we need to have redundancy because we cannot face the cataclysmic kind of circumstance that we faced in the past.”
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