Building Resilience in Manufacturing and Supply Systems in the COVID-19 context and beyond: Latin America Perspectives

The document examines how COVID-19 disrupted manufacturing in Latin America, highlighting the region's lack of industrial density and high dependency on China. It argues for a shift from cost-competitiveness to 'risk-competitiveness' by diversifying supply bases, increasing local manufacturing, and leveraging advanced technologies. The report details specific government responses in Peru, Mexico, and Colombia to support SMEs and secure medical supplies, while advocating for strengthened regional integration through blocs like the Pacific Alliance and the Andean Community to enhance long-term resilience.

• The COVID-19 pandemic has shifted the strategic priority for global value chain design from optimizing for cost to prioritizing 'risk-competitiveness'.
• Latin American manufacturing faces structural challenges due to a lack of industrial density compared to hubs in Asia, Europe, and North America, and a heavy reliance on China that is difficult to recalibrate due to lost skills during outsourcing.
• There is a positive correlation between the adoption of advanced technologies—including artificial intelligence, data analytics, 3D imaging, and additive manufacturing—and the ability of supply chains to adapt to disruptions.
• Regional governments have implemented specific financial measures to support SMEs and family businesses: Peru focused on the payments chain for companies representing 99.8% of all firms; Mexico provided loans to one million SMEs and one million family businesses; and Colombia provided financial guarantees through the “Unidos por Colombia” programme.
• To increase resilience, 47% of surveyed executives believe they must overhaul their manufacturing and supply networks by reducing complexity, diversifying supply bases, and increasing the use of local suppliers.
• Latin American nations are pursuing regional cooperation to secure critical health and food supplies, including a WTO pledge co-sponsored by Peru and supported by Brazil, Chile, Colombia, and Costa Rica, and a Joint Declaration by the Andean Community for joint medical supply purchases.

APA

World Economic Forum (2020). Building Resilience in Manufacturing and Supply Systems in the COVID-19 context and beyond: Latin America Perspectives. http://www3.weforum.org/docs/WEF_Resilience_in_manufacturing_and_supply_systems_LATAM_2020.pdf

Chicago

World Economic Forum. Building Resilience in Manufacturing and Supply Systems in the COVID-19 context and beyond: Latin America Perspectives. 2020. http://www3.weforum.org/docs/WEF_Resilience_in_manufacturing_and_supply_systems_LATAM_2020.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Building Resilience in Manufacturing and Supply Systems in the COVID-19 context and beyond: Latin America Perspectives |date=July 2020 |url=http://www3.weforum.org/docs/WEF_Resilience_in_manufacturing_and_supply_systems_LATAM_2020.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2020building, author = {{World Economic Forum}}, title = {{Building Resilience in Manufacturing and Supply Systems in the COVID-19 context and beyond: Latin America Perspectives}}, institution = {World Economic Forum}, year = {2020}, month = jul, url = {http://www3.weforum.org/docs/WEF_Resilience_in_manufacturing_and_supply_systems_LATAM_2020.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }