Industry 4.0 and its impact on reshoring trends in the global economy

Abstract

Methods. The results of the study were obtained through the application of scientific research methods, namely: abstraction – to define the reshoring trends on the influence of sustainable development goals based on Industry 4.0; analysis and synthesis – to determine the likelihood of reshoring of companies located abroad according to the degree of similarity between its technology situation; comparative studies – to establish the intensity of reshoring based on different technical solutions and type of manufacturers. Results. Industry 4.0 represents the fourth industrial revolution, emphasizing the crucial role of intelligent machines and smart automation in business activities. It has been demonstrated that these technologies provide the necessary flexibility for companies to overcome the difficulties of reshoring and at the same time maintain their competitiveness in the global value chain. Industry 4.0 solutions bring valuable insights into the supply chain during reshoring initiatives. Armed with Industry 4.0 technologies, managers are better equipped to achieve successful operations by controlling material flows before, during and after relocation of the company divisions. These technologies will offer valuable insights into various aspects, such as switching costs, supply chain governance, manufacturing planning, financial incentives and workforce planning. This enables companies to make informed decisions and optimize their reshoring strategies for long-term success. The main reasons for the spread of reshoring have been identified and its most widespread forms in the developed countries of the world have been singled out. The influence of Industry 4.0 technologies on the reshoring process is demonstrated and the current trends in its development are determined. Novelty. The scientific novelty of the research results lies in identifying the current trends of reshoring in the countries of the European Union and the USA and the influence of sustainable development goals on reshoring initiatives based on Industry 4.0. Practical value. The results of the study actualize the processes inherent in the modern economy, which is becoming more and more globalized. The identified modern trends of the reshoring initiative allow companies to build and implement more effective reshored business functions based on Industry 4.0 technologies.