As companies rethink where they make products, the risk of disruption is not spread evenly.
What’s Related
New research from McKinsey & Company shows that some industries are under far more pressure than others as global manufacturing networks shift in response to geopolitics, trade rules, and ongoing supply chain volatility.
Instead of treating disruption as a one-size-fits-all challenge, McKinsey groups industries into clear tiers based on how exposed they are to change. Those differences help explain why some sectors are moving quickly to rethink production strategies while others are taking a slower, more cautious approach.
High disruption industries: Electronics, machinery, semiconductors
Electronics, machinery, and semiconductors face the highest disruption risk right now, according to McKinsey.
These industries are often concentrated in a small number of countries, making them more exposed to tariffs, trade restrictions, and geopolitical tensions. They also require huge upfront investment, so moving production is expensive and hard to undo once decisions are made.
Semiconductors highlight the challenge. Advanced chip manufacturing depends on specialized equipment, long build times, and highly skilled talent. As governments push for more domestic production and tighter controls on technology exports, companies are being forced to rethink where new plants are built and how much risk they are willing to take on in any single region.
For these industries, McKinsey says manufacturing footprint decisions are no longer driven by cost alone. Access to markets, government incentives, and supply security now play a much bigger role.
Medium disruption industries: Life sciences and chemicals
Life sciences and chemicals fall in the middle of the disruption spectrum.
There is growing pressure to bring production closer to end markets, especially for critical drugs, medical supplies, and specialty chemicals. At the same time, strict regulatory requirements make it difficult to move manufacturing quickly.
Building new facilities or relocating existing ones often takes years of approvals, validation, and compliance work. That slows reshoring efforts, even when incentives are on the table.
McKinsey’s research suggests companies in these sectors must carefully balance resilience goals with regulatory realities. Change is happening, but it tends to be more gradual and carefully planned than in higher-disruption industries.
Lower disruption industries: Agriculture, minerals, energy
Agriculture, minerals, and energy currently face lower disruption risk, largely because production in these sectors is tied to geography.
Farmland, mineral deposits, and energy resources cannot be relocated based on policy decisions alone. That limits flexibility, but it also reduces short-term pressure to redesign manufacturing networks.
Still, McKinsey cautions that lower disruption does not mean no disruption. Climate risks, resource nationalism, and energy transition policies could reshape parts of these sectors over time, even if the pace of change is slower today.
Visibility a weak spot across all industries
One challenge cuts across every industry: limited supply chain visibility.
McKinsey found that many companies still lack clear insight beyond their direct suppliers. That makes it harder to assess risk, plan scenarios, or respond quickly when disruptions hit.
As a result, manufacturing footprint decisions are increasingly tied to investments in better data, digital tools, and ongoing monitoring, rather than one-time network redesigns.
