Eastern Europe: A Key Nearshoring Hub for Secure Western Supply Chains
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| Pages: | 56 : 66 |
| Abstract: | Amid ongoing global disruptions (including geopolitical tensions and trade fragmentation), businesses are increasingly prioritising supply chain security and flexibility. Eastern European countries, members of the European Union, have emerged as strategic nearshoring destinations for Western companies seeking to strengthen supply chain resilience and security while maintaining efficiency. The present analysis tries to identify the ongoing trends revealed in the specialised studies investigating the challenges of global supply chains following the COVID-19 pandemic, confirmed by the recent data of the Regional Integration and Value Chains Analyser (RIVA) developed by the United Nations Economic and Social Commission for Asia and the Pacific. The Eastern European region’s advantages (including geographic proximity to Western Europe, cost-competitive labour, and a highly skilled workforce, particularly in manufacturing, engineering, and IT services) enable shorter lead times, lower transportation costs, and improved coordination compared with offshore locations in Asia. As a consequence, the robust industrial ecosystems, supported by investments in infrastructure and digitalisation, and strengthened by foreign direct investment, can enable Eastern European countries to become a nearshoring hub within the reconfiguration of global supply chains, offering Western European companies a balanced alternative that mitigates risk while maintaining competitiveness. |
| JEL classification: | F23, F43, F51, O14 |
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F23, F43, F51, O14
