Global Uncertainty Sparks Supply Chain Worries
The specter of trade wars and tariffs is casting a long shadow over supply chain operations, with 77% of manufacturing and supply chain leaders expressing concerns about resource management in the coming months. A recent survey by global manufacturing firm Fictiv, involving over 250 supply chain professionals, highlights the growing unease. An overwhelming 96% of respondents voiced apprehension about the impacts of President Donald Trump’s trade policies, while 93% anticipate an escalation in trade wars by 2025.
Dave Evans, co-founder and CEO of Fictiv, remarked, “We’re seeing a level of global uncertainty and supply chain disruption we haven’t seen since 2020.” This sentiment underscores the challenges businesses face in navigating an increasingly volatile trade environment.
Onshoring and Long-Term Planning Take Center Stage
The survey also revealed a shift in strategic priorities, with over 90% of professionals incorporating global tensions into their long-term supply chain planning—up from 86% the previous year. Notably, 68% are focusing on onshoring efforts to counter potential tariffs, particularly in industries like medical technology, clean energy, and electric vehicles, which depend on producing complex parts at scale. Nearly 70% of respondents expressed a desire to bolster U.S. manufacturing capabilities to mitigate the impact of impending tariffs.
The trade landscape remains fraught with challenges. President Trump has delayed 25% tariffs on Mexico and Canada twice, but blanket levies on imported steel and aluminum have already triggered retaliatory measures. The European Union plans to impose tariffs on $28.4 billion worth of U.S. goods, while Canada has enacted tariffs on $13.9 billion worth of American products.
Onshoring and diversifying supply chains are prudent steps, but businesses must also invest in agility and resilience to weather the uncertainties of global trade. As the trade wars evolve, staying ahead of policy changes and fostering collaborative partnerships will be key to maintaining operational stability.
