PwC: Supply chains unlikely to relocate post-coronavirus

Supply chains will diversify in the wake of the coronavirus pandemic, but they will only relocate completely as a last resort, according to a survey of 305 CFOs completed by PwC during the week of April 20. Immediate supply chain concerns are waning as CFOs gain clarity on what to expect in the short term and what kind of changes are necessary to weather shocks like the COVID-19 pandemic in the future. CFOs recognize the value of diversification (56% plan to find alternate and additional sourcing options in reaction to COVID-19) but this is a somewhat long-term goal. Diversification is three-year exercise, Amity Millhiser, PwC vice chair and chief clients officer, said on a Monday call with reporters. The sentiments expressed in PwC's latest biweekly survey were echoed in a separate report issued recently by the accounting firm in partnership with AmCham China, in which 74% of businesses sourcing in China had no plans to move sourcing out of the country.