The 2024 US Presidential election could significantly reshape the procurement and supply chain landscape. Amidst the political uncertainty, resilience and strategic reassessment become critical for procurement leaders.
Election Impact on Supply Chain Resilience
The 2024 US Presidential election brings with it a cloud of uncertainty for procurement officers. The new president will inherit complex situations that demand immediate attention. Economic and market uncertainty, geopolitical unrest, and climate conditions are causing delays and increased costs in shipping markets. This has led many procurement teams to seek alternative suppliers to mitigate these expenses.
The ongoing conflicts disrupting the supply chain, such as the closure of the Red Sea and the Ukraine situation, have caused shipping rates between China and Europe to skyrocket. This has led to higher rates on Asia-to-US lanes as capacity is rerouted to compensate for longer transit times.
Trade Wars and Policy Potential
Tariffs on goods from China are set to continue, incentivizing US companies to source components used in EVs and solar cells from other countries. If President Trump returns to office, additional levies on Chinese products wouldn’t be surprising.
On the Atlantic side, trade relations are more favorable. The Biden Administration suspended tariffs on certain imports from the European Union and replaced tariffs with tariff-rate quotas on steel and aluminum from the EU and UK.
Given the ongoing tensions and the administration’s policy to drive up costs for goods from China, Chief Procurement Officers (CPOs) should reassess their supply chains to reduce exposure to this conflict.
The Future of Policy and NATO
Both parties agree on the need for infrastructure investment in highways, ports, and airports. However, immigration policies may be contentious. Trump has vowed to reduce undocumented immigration, while Democrats may continue cross-border movements, helping alleviate labor shortages in critical sectors like warehousing and distribution.
The future of ESG and DEI policies may also be at stake. A new Trump Administration would likely work to lessen or eliminate the influence of these programs. The future of NATO could also hang in the balance, with potential changes having a seismic effect on the supply chain.
The 2024 US election gives procurement leaders another reason to drive resilience throughout their extended supply chains to insulate the enterprise against unexpected shocks. Efforts will continue to optimize sources, cut costs, and reduce and mitigate risks.
