Global Supply Chain Pressures Persist as Manufacturers Stockpile Amid Uncertainty
Event summary
- GEP's June 2026 Supply Chain Volatility Index shows global supply chain pressures remained elevated despite falling oil prices and lower transportation costs.
- Manufacturers reported the highest backlogs due to input shortages since late 2022, signaling bottlenecks will persist into at least Q3 2026.
- Buffer inventory stockpiling reached its highest level since January 2023 as businesses prepare for further disruption.
- Demand for raw materials and commodities remained strong in North America and Asia, while European manufacturers reduced buying volumes.
The big picture
GEP's data reveals persistent supply chain volatility driven by geopolitical uncertainty, despite temporary cost relief from lower oil prices. The strategic anomaly is the disconnect between easing transportation costs and continued stockpiling, suggesting manufacturers remain skeptical of stable trade conditions. This trend reinforces the need for resilient supply chain strategies as global economic recovery remains uneven.
What we're watching
- Geopolitical Risk
- How the US-Iran ceasefire uncertainty will affect supply chain stability and stockpiling behavior.
- Regional Disparities
- Whether Europe's reduced buying activity signals broader economic weakness or strategic repositioning.
- Cost Pressures
- The pace at which transportation costs will normalize and their impact on supply chain volatility.