A Global Rewiring: Redefining Global Value Chains for the Future

The report argues that global value chains are entering a 'supply-constrained world' driven by climate change, geopolitical tensions, and technological shifts. It identifies five key trends—multi-local value chains, end-to-end digitalization, economies of skill, innovative sustainability, and customer-value-driven strategies—that are redefining globalization. The authors suggest that manufacturers must move from incremental adaptation to a bottom-up redesign of their operations to ensure long-term business continuity.

• The global economy has entered a new mega-cycle characterized by a 'supply-constrained world' where success is limited by the ability to generate supply rather than demand. This shift is driven by inflation, labour and resource shortages, and energy price surges.
• Data from the September 2022 Global Value Chain Barometer shows a sharp increase in disruption events compared to 2021, with geopolitical tensions causing the largest spike, followed by technological and climate-related disruptions.
• Manufacturers are shifting from single global value chains to 'globally connected multi-local value chains,' producing 'in the region, for the region' to reduce lead times and navigate trade barriers, though this increases costs and reduces economies of scale.
• There is a transition from 'doing' digital (isolated projects) to 'being' digital, where technology is integrated into the core of value-chain decision-making to provide visibility and traceability, although this increases vulnerability to cyber threats.
• The focus of competitive advantage is shifting from economies of scale to 'economies of skill,' requiring highly skilled workers to operate AI, automation, and additive manufacturing, leading to a 'war for talent.'
• Sustainability is moving from a matter of regulatory compliance to a driver of innovation. This shift is necessitated by the increasing frequency of extreme weather and pressure from investors and consumers, though it creates intense competition for raw materials like lithium and cobalt.
• Value chain logic is evolving from being cost-driven to customer-value-driven, where resilience and sustainability are treated as strategic differentiators rather than secondary objectives to cost optimization.

APA

World Economic Forum (2023). A Global Rewiring: Redefining Global Value Chains for the Future. https://www3.weforum.org/docs/WEF_A_Global_Rewiring_Global_Value_Chains_2022.pdf

Chicago

World Economic Forum. A Global Rewiring: Redefining Global Value Chains for the Future. 2023. https://www3.weforum.org/docs/WEF_A_Global_Rewiring_Global_Value_Chains_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=A Global Rewiring: Redefining Global Value Chains for the Future |date=January 2023 |url=https://www3.weforum.org/docs/WEF_A_Global_Rewiring_Global_Value_Chains_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023global, author = {{World Economic Forum}}, title = {{A Global Rewiring: Redefining Global Value Chains for the Future}}, institution = {World Economic Forum}, year = {2023}, month = jan, url = {https://www3.weforum.org/docs/WEF_A_Global_Rewiring_Global_Value_Chains_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }