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Concentration of supply in global industrial policy

The United Nations Conference on Trade and Development (UNCTAD) noted that the trend in general industrial policy in the world has led to a greater concentration of the supply of essential inputs and raw materials.From this organization’s perspective, industrial policy is likely to increase the concentration of the global supply of strategic products in an even smaller number of economies. Increased supply concentration refers to a situation in which a smaller number of suppliers dominate a particular market or industry.By providing heavy subsidies to their own industries, developed countries and major emerging economies are expected to improve their global competitiveness in these sectors. UNCTAD believes that this will affect not only their domestic markets but also global trade, potentially marginalizing smaller economies from entering these lucrative markets. This may also have important implications for developing countries.

Concentration of supply

More and more companies around the world are taking actions related to this trend, such as Maravai LifeSciences Holdings, as an example.Maravai LifeSciences is a leading life sciences company that provides critical products to enable the development of new vaccines and drug therapies. and diagnostics, and support human disease research. Through its acquisition of Alphazyme in the first quarter of 2023, Maravai LifeSciences acquired a specially designed enzyme production facility in Jupiter, Florida, that can produce enzymes in kilogram quantities. The facility includes environmental controls such as HEPA filtration, pressure, temperature and humidity monitoring, with vertical integration of all enzyme development, production and testing operations. Its enzymes are produced under the controls of an ISO 13485:2016-compliant quality management system.

Suppliers

This company’s supply chain is supported by a diverse network of specialized suppliers and transportation partners and undergoes regular assessments to evaluate supplier quality and identify risks, including those associated with supply concentration. These proactive assessments enable Maravai LifeSciences to implement strategic measures to effectively manage and mitigate risks. By continuously optimizing its supply chain, the company ensures operational resilience and maintains a consistent supply of critical materials for its products.