From Sweden Back and Forth: The Changing Role of Manufacturing in a VUCA World

Background: Trade regulations, the pandemic, and other disruptions have revealed the vulnerability of long and complex supplier networks. At the same time, there is an increasing need for firms to operate sustainably. An emerging topic in supply chain management literature is the phenomenon of near- and reshoring, addressing the process of moving previously offshored activities closer to or back into the country of origin. However, a missing link in research has been to base findings on in-depth primary data from managers, especially in times of crisis. Therefore, this study explores how relocation decisions are affected by disruption events and the increasing need for sustainable businesses. Purpose: This study aims to discover how the relocation of value-adding activities is influenced by today’s unpredictable business environment and the increasing awareness of economies’ social and environmental impact. Method: The study employs a qualitative research method using an inductive approach by semi-structured interviews with five Swedish manufacturing enterprises with global supply chains. The interviews were conducted with two CEOs, two supply chain managers, one sales and production manager, and one project manager. Conclusion: Recent disruption events have made near- and reshoring decisions a serious consideration amongst business leaders. The findings and analysis showed that relocation decisions are implemented more partially in order to diversify the manufacturing facilities geographically, in order to make supply chains more resilient. Additionally, there exists a great tension between the rapidly changing, unpredictable business environment and the long-term nature of relocation decisions. Sustainability, on the other hand, was identified as a positive side effect rather than the main driver for the relocation of production sites within the traditional manufacturing industry