EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can help
-
EY teams can help address ESG and sustainability issues, investor concerns and improve ESG performance. Find out how.
Read more
Supply chain relocation could have a significant impact on FDI in Europe. When the pandemic first hit, severe supply chain disruption caused many businesses (83% of businesses in our April 2020 survey) to consider nearshoring or reshoring back to their domestic market. This would have significantly impacted foreign investment in Europe, with international businesses potentially relocating operations away from Europe coupled with some European businesses returning to Europe. But one year later, the survey data reveals that most businesses have not pursued these plans, with just 20% planning to reshore operations to their domestic market and only 23% expecting to nearshore closer to customers (see figure 4).
Currently, many companies would prefer to avoid disruptive and costly reorganizations. Asia is showing solid signs of recovery causing multinationals to maintain a presence there for now.
Although businesses are less keen to reshore and nearshore operations than they were 12 months ago, there is stronger appetite to reduce their dependence on single or dominant source countries and to operate more regional-based supply models.