Supply chain executive survey shows companies targeting shift from China supply exposure to US and Mexico

  • 72% in North America say decreasing exposure to China is highly important.
  • 94% in EMEA say reduction of China sourcing dependence is under way.
16 January 2024

NEW YORK (January 16, 2024) – Supply chain executives in North America and EMEA are placing more attention on resilience and cost efficiency even as they implement a more robust China-Plus strategy, according to a survey by global consulting firm AlixPartners. The firm’s inaugural “End-to-End Supply Chain Survey” polled over more than 200 supply chain executives of large corporations across five industries in North America (NA) and Europe, the Middle East, and Africa (EMEA) to understand the top-of-mind issues and challenges when considering nearshoring. Sixty percent of survey respondents work for companies reporting at least $5 billion in sales in the automotive, consumer products, industrials and building, medical device, and oil & gas industries.

Executives continue to see diversification away from heavy China dependence as a priority, with nearshoring and organizational changes helping achieve this goal. Many executives have started by creating a roadmap, and this could be giving these managers latitude to heighten their focus on cost efficiency. But there is ample work to do.

Nearly three-quarters of NA respondents have started reducing exposure to China, with more than half of companies planning to reduce China exposure next year by more than 10% via insourcing, re-sourcing, or other means. To accelerate China+ sourcing and develop make vs buy strategies, companies are investing in supplier development, logistics & distribution footprint changes, and global procurement cost modelling. This is further necessitated by the fact that China, in many cases, is no longer the total landed cost leader, especially when adjusted for risk. 

Additional highlights from our North American survey respondents:

  • Companies are targeting a roughly 40% reduction in China exposure. The shift is in an early but critical stage.
  • The U.S. and Mexico are expected to gain 10% and 30%, respectively.
  • Developing a make vs. buy strategy is seen as critical, regardless of industry. Among those polled, however, as many as 45% in certain sectors have not yet developed a strategy for execution.
  • Overall, companies seem fairly familiar with impact of US federal incentives, yet only 42% of companies have a plan to make use of US Federal Incentives.

Link to our NA survey report: As nearshoring strategies take shape, North American manufacturers sharpen their focus on supply chain efficiency.

On the other side of the pond, EMEA survey respondents have reordered priorities as a result of their shift away from China, with efforts now aimed at diversifying supply bases and employing near- or onshoring strategies. Companies are targeting an overall 35% reduction in China's sourcing share—India, Eastern Europe, and Vietnam are among the supply bases that could benefit the most as a result. Labor and infrastructure are the most important topics when considering nearshoring, while cost, quality, and resilience are the highest concerns when optimizing supply chains. Companies feel government and local incentives are the most developed lever they can pull in a China+ diversification strategy (compared to supplier capacity, capability, cost considerations, etc.). However, the readiness to utilize government incentives varies based on geography and industry.

Additional highlights from our EMEA survey respondents:

  • 94% of survey respondents say reduction of China sourcing dependence is under way.
  • Developing a “make vs. buy” strategy is seen as critical, regardless of industry. Among those polled, however, as many as 41% in certain sectors have not yet developed a strategy for execution.
  • Some 44% of respondents told us procurement cost modeling is of high importance, followed closely by risk quantification and manufacturing capability additions.
  • Companies have deep knowledge of European Union government incentives, and 80% have a plan to use them.

Link to our EMEA survey report: EMEA Nearshoring survey: 94% say reduction of China sourcing dependence under way.



About AlixPartners

AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical challenges. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981, AlixPartners is headquartered in New York and has offices in more than 20 cities around the world. For more information, visit

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