According to Accenture Research, Businesses Target Doubling Onshoring Rate from 38% to 65% by 2026
According to Accenture Research, Businesses Target Doubling Onshoring Rate from 38% to 65% by 2026
Accenture's "Resiliency in the Making" research shows that companies are shifting toward regional sources rather than global supply and production. By 2026, 65% of companies plan to source their core products from regional suppliers (onshoring), up from 38% today. Additionally, a larger number of organizations (85%) are targeting the production and sale of their products in the same region (onshoring).
Companies are making substantial investments to execute this shift. On average, in 2023, companies spent 1 billion dollars to digitalize, automate, and relocate supply and production facilities. This amount is expected to rise to at least 2.5 billion dollars by 2026.
The report is based on a survey conducted in early 2023 with 1,230 senior executives from various industries. According to the research, regional supply and production are important for becoming more resilient to disruptions, but insufficient to achieve long-term resilience. To reach this goal, companies are attempting to increase their digital maturity by investing in solutions such as data, artificial intelligence, and digital twins.
Sunita Suryanarayan from Accenture notes that while companies have rapidly remedied complex global production and supply networks with short-term solutions, they now need to strategically redesign these networks to make them multi-sourced, more transparent and agile through data and artificial intelligence.