How Geopolitics Is Reshaping Facility Location Planning and Supply Chain Network Design
10.07.2026
From Supplychainbrain
Facility location planning has become a strategic supply chain capability rather than a real estate decision.
In this article originally published in the SupplyChainBrain 2026 Resource Guide, Kevin Troyer explores the geopolitical tensions, tariffs, and regional trade policies reshaping global manufacturing, prompting organizations to redesign production and distribution networks to improve resilience while maintaining competitiveness. Companies are increasingly evaluating nearshoring, friendshoring, and regional manufacturing strategies through scenario modeling that balances cost, risk, lead times, talent availability, compliance, and sustainability. While Mexico continues to emerge as North America's primary nearshoring destination, companies must also account for labor availability, infrastructure constraints, and long-term flexibility. Organizations that combine geopolitical intelligence with advanced network modeling will be better positioned to adapt supply chains as global trade conditions continue to evolve.