Economic Bulletin of the National Mining University

 

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Issue:2023 №4 (84)
Section:International economic relations
UDK:339.977
DOI:https://doi.org/10.33271/ebdut/84.067
Article language:English
Pages:67-74
Title:Industry 4.0 and its impact on reshoring trends in the global economy
Authors:Pylypenko H. M., Dnipro University of Technology,
Herasymenko T. V., Dnipro University of Technology
Annotation:Methods. The results of the study were obtained through the application of scientific research methods, namely: abstraction – to define the reshoring trends on the influence of sustainable development goals based on Industry 4.0; analysis and synthesis – to determine the likelihood of reshoring of companies located abroad according to the degree of similarity between its technology situation; comparative studies – to establish the intensity of reshoring based on different technical solutions and type of manufacturers. Results. Industry 4.0 represents the fourth industrial revolution, emphasizing the crucial role of intelligent machines and smart automation in business activities. It has been demonstrated that these technologies provide the necessary flexibility for companies to overcome the difficulties of reshoring and at the same time maintain their competitiveness in the global value chain. Industry 4.0 solutions bring valuable insights into the supply chain during reshoring initiatives. Armed with Industry 4.0 technologies, managers are better equipped to achieve successful operations by controlling material flows before, during and after relocation of the company divisions. These technologies will offer valuable insights into various aspects, such as switching costs, supply chain governance, manufacturing planning, financial incentives and workforce planning. This enables companies to make informed decisions and optimize their reshoring strategies for long-term success. The main reasons for the spread of reshoring have been identified and its most widespread forms in the developed countries of the world have been singled out. The influence of Industry 4.0 technologies on the reshoring process is demonstrated and the current trends in its development are determined. Novelty. The scientific novelty of the research results lies in identifying the current trends of reshoring in the countries of the European Union and the USA and the influence of sustainable development goals on reshoring initiatives based on Industry 4.0. Practical value. The results of the study actualize the processes inherent in the modern economy, which is becoming more and more globalized. The identified modern trends of the reshoring initiative allow companies to build and implement more effective reshored business functions based on Industry 4.0 technologies. 
Keywords:Reshoring trends, Technological progress, Manufacturing, Technology levels, Industry, Technical solutions
File of the article:EV20234_067-074.pdf
Literature:
  • 1. America is ready for reshoring are you? (2022). Tenth anniversary of Kearnye’s annual Reshoring index. Retrieved from https://www.kearney.com/service/operations-performance/us-reshoring-index
  • 2. Handley, L. (2023). Firms are bringing production back home because of the Ukraine war, China's slowdown and TikTok. Retrieved from https://www.cnbc.com/amp/2023/06/01/reshoring-more-domestic-manufacturing-due-to-supply-chain- disruption.html
  • 3. Hobson, D. (2023). The global supply chain consequences of the Russia-Ukraine war. Retrieved from https://news.ufl.edu/2023/02/russia-ukraine-global-supply-chain/
  • 4. Bilbao-Ubillos, J., Camino-Beldarrain, V., Intxaurburu-Clemente, G, & Velasco-Balmaseda, E. (2023). Industry 4.0 and potential for reshoring: A typology of technology profiles of manufacturing firms. Retrieved from: https://doi.org/10.1016/j.compind.2023.103904
  • 5. Lampón, J.F., Rivo-López E. (2022). The effect of the industry technology intensity on the drivers of manufacturing backshoring, Journal of Manufacturing Technology Management, 33, pp. 1-21. https://doi.org/10.1108/jmtm-03-2021-0071
  • 6. Lee G. Branstetter, Chen Jong-Rong, Glennon Britta, Zolas Nikolas (2021). Does offshoring production reduce innovation: firm-level evidence from Taiwan. Nber Working Paper Series. Retrieved from http://www.nber.org/papers/w29117
  • 7. Leng, J., Wang D., Shen W., Li X., Liu Q. and Chen X. (2021). Digital twins-based smart manufacturing system design in Industry 4.0: a review, Journal of Manufacturing Systems, 60, pp. 119- 137.https://doi.org/10.1016/j.jmsy.2021.05.011
  • 8. Luo, Y., & Zahra, S.A. (2023). Industry 4.0 in international business research, Journal of International Business Studies, 54, pp. 403-417.
  • 9. Di Sano, M., Gunnella, V., & Lebastard, L. (2023). Deglobalisation: risk or reality? Retrieved from https://www.ecb.europa.eu/press/blog/date/2023/html/ecb.blog230712~085871737a.en.html
  • 10. Rasmussen, R. (2016). Technology is bringing mass customization to domestic manufacturing. Retrieved from https://www.reshorenow.org/blog/technology-is-bringing-mass-customization-to-domestic-manufacturing/
  • 11. Reshoring Initiative (2022) Data Report. IRA and Chips Act Boost Reshoring to Another All-Time High, Up 53%. Retrieved from https://reshorenow.org/content/pdf/2022_Data_Report.pdf
  • 12. Gupta, S., Wang, Y., & Czinkota, M. (2023). Reshoring: A Road to Industry 4.0 Transformation. Retrieved from https://onlinelibrary.wiley.com/doi/full/10.1111/1467-8551.12731
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