Global Manufacturing Demand Surges in January, Led by Asia and North America

Event summary

  • GEP's Global Supply Chain Volatility Index rose sharply in January 2026, with procurement activity reaching its highest level since May 2022.
  • Asia's index climbed to 0.12 from -0.20, indicating the busiest supply chains since November 2024, driven by China, Japan, Korea, India, and ASEAN markets.
  • North America's index rose to 0.06 from -0.37, marking the most stretched supplier capacity in over 1.5 years, with US manufacturers showing confidence in order pipelines.
  • Europe lagged with an index drop to -0.27 from -0.17, reflecting continued destocking and underutilized supply chains.
  • Global demand for commodities and raw materials saw its strongest increase in nearly four years, while transportation costs rose due to higher oil prices.

The big picture

The January 2026 data from GEP's Global Supply Chain Volatility Index signals a broad-based recovery in global manufacturing demand, particularly in Asia and North America. This rebound comes amid a backdrop of declining cost of capital and resilience in the US industrial economy, despite tariffs and trade uncertainties. The divergence between Europe's underutilized supply chains and the busier conditions in other regions highlights the fragmented nature of the global manufacturing landscape.

What we're watching

Regional Disparities
Whether Europe's manufacturing sector can recover from its laggard position as Asia and North America continue to lead the rebound.
Inventory Trends
The pace at which North American manufacturers sustain inventory building amid declining cost of capital and trade uncertainties.
Transportation Costs
How rising oil prices will impact global supply chain volatility and procurement strategies in the coming months.