Subject
Asia's changing role in global supply chains.
Significance
Asian supply chains and their role in the global economy are undergoing far-reaching change. They are shifting from a low-cost model based on a set of particular exports to Western developed countries to prioritising high value-added trade and putting stronger emphasis on Asian markets. Handling a wider variety of products and matching rapidly changing demand is becoming a top priority, making the role of technologically advanced suppliers of key inputs, including small and medium companies (SMEs), increasingly important.
Impacts
Demographic change will catalyse changes in consumption patterns and supply chains.
Supply chains' development will drive demand for automation technology.
South-east Asian supply chains will be constrained until infrastructure improves.