 Reindustrialization Dynamics: How to Encourage the Transition from Global to Local Supply Chains?François Fulconis () and
Jérôme Joubert ()
Post-Print from HAL Abstract: For more than four decades, the tertiarization of the economy, massive offshoring, low competitiveness in terms of unit labor costs, and foreign competition have all contributed to the decline of manufacturing in France and several other European countries. At the same time, in an increasingly globalized economy, global value chains -defined as the extensive international fragmentation of production processes -appeared to have prevailed. However, in today's increasingly uncertain geopolitical climate, and following a series of major events that have disrupted the functioning of the global economy and threatened many industries worldwide -including the Covid-19 pandemic, the ongoing electronic components crisis since 2020, the 2021 Suez Canal blockage, and the global energy crisis of 2021-2023 -the dominance of global value chains is now being called into question. Given this observation, the aim of this research is to examine the feasibility of the reindustrialization pursued by many European countries, including France. Since the early 2020s, France has intensified its support mechanisms for industrial relocation projects. Drawing on recent examples, the study reveals that numerous challenges threaten the ongoing reindustrialization process and that significant obstacles must still be overcome to facilitate the transition from global to local supply chains. The main findings are presented in two parts. First, through a literature review, the article examines the foundations underpinning the debate between deindustrialization and reindustrialization. It highlights persistent barriers to reindustrialization, which primarily affect a wide range of stakeholders in the sector (manufacturers, distributors, retailers, logistics service providers, public authorities, etc.). These actors face challenges related to labor availability, raw materials and rare earth supplies, land use, and access to investment capital. Second, the article underscores the need to rethink territorial dynamics and flow management with a focus on proximity, considering factors such as the location of activities, spatial planning, and the capacity to utilize local resources. In light of the renewed emphasis on territoriality, supply chains are being re-evaluated, calling into question the dominance of the global "hub-and-spoke" model in favor of the "point-to-point" model, which may be more suitable for a proximity-based approach. In summary, the investigation reveals that although the challenges of shifting from global to local supply chains are significant for countries pursuing reindustrialization, numerous economic and logistical barriers must be addressed to successfully implement and benefit from large-scale industrial relocation. Keywords: Global Supply Chains; Global Value Chains; Logistics; Reindustrialization; Territories (search for similar items in EconPapers) Published in The 16th Edition of the FoE International Conference : “The World Economy in Turmoil”, Faculty of International Business and Economics Bucharest - University of Economic Studies (ASE), Oct 2025, Bucarest, Romania There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05361517 Access Statistics for this paper More papers in Post-Print from HAL |
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