Report
Patrick Artus

Without automation, there will be no reshoring to euro-zone countries

There is often talk of reshoring in euro-zone countries, and a return of production previously offshored to emerging countries. But given the production costs in euro-zone countries, it will be impossible to reshore labour-intensive industries. So the only way to reshore is automation and digitisation. Some euro-zone countries are lagging behind in automation (Spain, Italy, even more France), which is therefore an obstacle to reshoring. Why is there a delay in automation in these countries? Possible explanations are: Low labour force skills; Insufficient profitability or external financing of companies; Preference for offshoring to reduce production costs, instead of automation. If these causes of the lack of automation persist, it is difficult to believe in reshoring .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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