Mexico, Turkey, and Russia rank as the riskiest sourcing markets worldwide, according to a new report that highlights the fragility of global supply networks. The Global Sourcing Risk Index from consultancy Proxima, produced with Oxford Economics, evaluates 30 major economies across multiple dimensions of supply chain exposure.
A Framework for Measuring Sourcing Volatility
The index examines 10 industries and scores them against eight dimensions of risk: geopolitical conflict, climate exposure, compliance and governance, human rights, trade barriers, labor price volatility, input price volatility, and supplier concentration. Together, these factors map where companies face the highest likelihood of disruption.
Mexico topped the list due to governance concerns, reliance on a narrow set of trading partners, and exposure to geopolitical and climate-related risks. Turkey and Russia followed closely, while the United States ranked 13th, reflecting its own challenges from labor costs and weather-driven risks. Europe stood out as the lowest-risk region, with Switzerland placed at the bottom of the global rankings, though the report cautioned that Europe remains the highest-cost sourcing region.
Regional and Sectoral Risk Patterns
The findings highlight stark contrasts across geographies. Saudi Arabia carries the highest risk on human rights exposure, while Singapore faces elevated tariff risks tied to its re-export-driven economy. The Philippines leads on climate vulnerability due to its susceptibility to rising sea levels and severe storms. Russia, India, and the Philippines joined Mexico and Turkey in the top five overall.
Industry-level analysis shows energy, manufacturing, and food and beverage as the most exposed sectors because of their dependence on high-risk geographies. Taken together, the 30 economies analyzed represent more than 85% of global GDP and nearly two-thirds of global trade, emphasizing the report’s relevance for multinational supply strategies.
Why Relative Stability Can Be Misleading
While the index reinforces the perception that emerging markets carry higher sourcing risks, it also challenges the assumption that developed economies offer safe havens. The U.S.’s higher-than-expected ranking illustrates how geopolitical tensions and climate shocks are reshaping the risk profile even in advanced economies.
Nearshoring or diversifying supply chains does not automatically lower exposure unless strategies are built on a holistic view of political, environmental, and operational dynamics. Companies that overly rely on cost or proximity as decision factors may find themselves blindsided when risk surfaces in less obvious places.
