Navigating Market Volatility: Future Proofing Global Supply Chains

Delivery

This report comes in PPT.

Key Findings

Structural changes in global economy will take time, resulting in longer-lasting disruptions

After a period of stabilisation over 2023-2024, global supply chains again feel new pressures. New challenges are expected to be longer lasting and more unpredictable, driven by changing trade landscape and economic restructuring, requiring a comprehensive review of global supply networks.

Changing trade landscape necessitates supply chain review

The changing global trade landscape is expected to affect a wide range of goods, from B2B components to consumer products. Developed economies will face higher costs on high-value exports. Emerging economies, especially those in Asia, will be significantly affected due to their reliance on lower-value exports to the US, such as textiles and toys.

Asia still promises growth opportunities

Despite increasing supply chain pressures, companies can still uncover new growth opportunities, especially in Asia. The Asia Pacific region is forecast to expand manufacturing output by USD10 trillion by 2030, benefitting from supply chain diversification efforts and investments in machinery, hi-tech goods and chemical products industries.

Managing cost of change will be critical

Managing the cost of change will be a critical priority for manufacturing companies as they undertake supply chain diversification. This includes managing direct costs associated with new investments and expansion of supplier pool, as well as technological and geopolitical risks that may arise.

Strategies to mitigate long-term risks will be important

Supply chain diversification efforts are expected to drive investments into new production facilities, which will be in operation for the next 10-15 years. Developing strategies for how to mitigate long-term risks, such as climate change, geopolitical landscape or skills gap, and avoid major disruptions will become more important.