By Stephen DeAngelis
On Wednesday an de-globalization economic nuclear bomb went off attempting to wipe out decades of globalization and international trade in one fell swoop. This is a system shock or perturbation of epic proportions. Setting in motion a series of actions and reactions in global markets that we are just beginning to experience, much less understand. I will be writing more about this in the next installments of this blog series.
Before April 2, 2025, a casual observer of today’s ever-changing geopolitical landscape might conclude that global supply chains are shrinking and that business collaboration is waning. Enlightened business leaders know, however, that in today’s ultra-competitive environment it’s global ecosystems that compete — not companies alone.
Driven by automation, massive investments in at-scale, fit-for-purpose technologies, specialized training, low labor rates and effective demand and supply planning capabilities ecosystems have emerged to be efficient fabric of global manufacturing competitiveness. So, how do/how did we define a global ecosystem? It is the interconnected network of stakeholders involved in the resourcing, production, supply, and distribution of goods around the world. Because these ecosystems are global, they face myriad challenges that test their resilience, efficiency, and ability to embrace emerging opportunities. As a result, stakeholders require a collaborative, unified approach to thrive. At the moment, however, differing national policies, tariffs, and regulations create enormous complexity — and geopolitical uncertainty only adds to this complexity. Nevertheless, the reality remains that strong partnerships and alliances are crucial for smart manufacturing, supply chain resilience, and overall competitiveness.
The Importance of Global Manufacturing Ecosystems
Example: The iPhone.
Anyone harboring doubts about the importance of global manufacturing ecosystems today need only look at products like Apple’s iPhone to underscore the reliance such companies place in those ecosystems. Although the final assembly of iPhones is done in China, primarily by companies like Foxconn and Pegatron, components come from numerous parts suppliers. Displays are provided by suppliers in South Korea and China. Memory chips and DRAM come from Japan. Glass comes from the USA, Taiwan, and Japan. Computer chips are made in Taiwan. Batteries are sourced from South Korea and China. Other components come from European countries, like Germany. In all, Apple works with suppliers in 43 countries to obtain the raw materials and components needed to build an iPhone.
Financial writer James Anthony writes, “The iPhone exemplifies global economic interdependence by integrating components and expertise from multiple countries, highlighting the collaborative nature of modern manufacturing. This interdependence ensures that the best resources and technologies from around the world are utilized to create a high-quality product.”[1]
Example: The F-35 Joint Fighter.
In addition to acquiring the best technologies and resources around the world, another reason companies often foster global ecosystems is to ensure access to foreign markets. For example, the F-35 fighter jet contains parts sourced from various countries including the US, UK, Italy, Netherlands, Canada, Denmark, Norway, Australia, and Turkey. The United Kingdom supplies components like the rear fuselage, electronics, and ejection seats. Australia produces the vertical tail sections of the Conventional Take-Off and Landing (CTOL) variant. Canada contributes significant components, with Peace Brigades International-Canada reporting that each jet contains $2.3 million worth of Canadian components. Israel Aerospace Industries manufactures the outer wings and helmet-mounted displays for Israeli F-35s. And, the United States is the primary location for final assembly at Air Force Plant 4 in Fort Worth, Texas. Countries are more likely to buy products where domestic manufacturers have skin in the game. As an aside, one of the most impressive set of days I spent several years ago was to walk the immense joint strike fighter assembly facility in Fort Worth.
Global ecosystems are not only good for business. Looking at the larger picture, they foster peace and stability. Additionally, global ecosystems create markets that will sell products to the next 2 billion middle class consumers. Those consumers are largely coming from emergent developing economies with growing populations — as opposed to the shrinking populations of more mature nations. Following the Covid pandemic, Revathi Advaithi, Chief Executive Officer at Flex, noted that it forced many manufacturers and politicians to reexamine supply chain strategies. Her conclusion was the cooperation rather than confrontation was the best course of action. She explained, “Resilient supply networks require diversifying risks across borders, while also leveraging that the strengths of different geographic markets and increasing cooperation between the private and public sectors.”[4]
There are absolute pro’s and absolute con’s about global manufacturing ecosystems. Looking at these global ecosystems through the lens of complexity science and network theory, Ecosystems are Emergent within a global economic landscape thru a Darwinian like evolution and adaptation where the strongest ones survive driven by adaptable efficiency and resiliency. We will now see how these ecosystems will adapt and survive to the current system shocks (perturbations).
Footnotes
[1] James Anthony, “How iPhone Is Made: The Global Assembly Line in 2024,” FinancesOnline, 1 March 2025.
[2] Bryan Merckling, “Creating A Collaborative Ecosystem To Drive Smart Manufacturing,” Forbes, 22 March 2024.
[3] Bob Tilling, “What is a Manufacturing Ecosystem and Why are They Growing?” Contract Pharma, 3 May 2023.
[4] Revathi Advaithi, “Balancing the manufacturing ecosystem in a globalized world,” World Economic Forum, 14 February 2022.
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