Thailand, the Philippines and several Latin American nations are emerging as the next generation of global supply chain hubs, as companies continue to diversify sourcing beyond traditional manufacturing powerhouses.
According to a July 16 assessment of "rising stars" for global supply chains, risk intelligence firm Verisk Maplecroft identified a handful of countries that could become the next major manufacturing hubs. That includes Thailand, which operates as Southeast Asia's leading auto manufacturer, and boasts a surging electronics sector as artificial intelligence investments have expanded.
In South America, Argentina has emerged as a leading contender, thanks to trade deals with the U.S. and EU that have made it an attractive source of critical minerals, energy and industrial exports. Chile represents a "lower-risk Pacific-side play" as well, thanks to improvements the country's made in labor rights, and the relative openness of its trade markets.
By shifting to these countries for sourcing, manufacturers can spread production across a wider range of markets and reduce their exposure to geopolitical and trade risks, Verisk said.
"The businesses that move first – screening these markets now, building supplier relationships before demand spikes, and stress-testing entry strategies against external risk data – will find themselves better-positioned to act when faced with disruptive geopolitical realignment, trade restrictions, or conflict outbreaks," the firm explained.
The search for new manufacturing hubs has accelerated in recent years as companies have looked to build more resilient supply chains in the face of a constant stream of disruptions. Verisk's report found that those decisions are increasingly being shaped by factors such as market openness, regulatory conditions and access to strategic industries, rather than labor costs alone. This also comes as conditions in traditional hubs like Vietnam and Malaysia have deteriorated across all three of those factors.
