What's Happening?
Kearney, in collaboration with the World Economic Forum (WEF), has released a report analyzing the ongoing threats to global supply chains and the strategies leaders are adopting to enhance resilience. The report, presented at the WEF's annual conference,
emphasizes the 'era of structural volatility' affecting supply chains worldwide. This volatility is driven by geopolitical fragmentation, such as the U.S.'s economic maneuvers concerning Greenland, and has led to significant shifts in global trade flows. In 2025, over $400 billion in trade was reshuffled due to tariff escalations, and more than 3,000 new trade and industrial policy measures were introduced globally. The report suggests that resilience is now a key driver of growth, with 74% of business leaders prioritizing investments in contingency plans.
Why It's Important?
The findings underscore a critical shift in how businesses and nations approach supply chain management. As geopolitical tensions and trade policy changes become more frequent, the ability to adapt and maintain supply chain resilience is increasingly seen as a competitive advantage. This shift impacts national competitiveness and corporate strategies, as companies and countries that can effectively coordinate ecosystems and build foresight capabilities are better positioned to attract investment and sustain growth. The report highlights the need for adaptive networks that can be reconfigured as conditions change, moving away from efficiency-driven models.
What's Next?
The ongoing geopolitical fragmentation and trade policy shifts suggest that supply chain disruptions will continue to be a structural condition. Business leaders are expected to focus on redesigning operating models to function under permanent uncertainty. This involves developing adaptive networks and investing in resilience as a growth driver. The WEF's findings may influence future policy discussions and corporate strategies, as stakeholders seek to navigate the complexities of a fragmented global economy.
Beyond the Headlines
The report's emphasis on resilience and adaptation reflects broader trends in global economic governance. As traditional models of efficiency give way to more flexible approaches, there may be long-term shifts in how value is created and distributed globally. The focus on resilience could also lead to increased collaboration between public and private sectors to address systemic risks and enhance supply chain security.
