Global Manufacturing Demand Surges in September, Supply Chain Pressures Resurface
Event summary
- GEP's Global Supply Chain Volatility Index shows global manufacturers increased purchasing of raw materials and components in September, with demand growth nearing 2026 highs.
- Supply shortages rose for the first time since May, driven by acute shortages in oil and oil-based products.
- Transportation costs increased in September, marking the first rise since April.
- Asia and North America saw significant increases in their volatility indices, while Europe and the U.K. experienced declines.
The big picture
The surge in manufacturing demand signals a robust industrial recovery heading into Q4, but the simultaneous rise in supply chain pressures highlights the delicate balance manufacturers must maintain between securing supply and controlling costs. The regional disparities in supply chain volatility underscore the need for tailored strategies to navigate varying levels of disruption.
What we're watching
- Supply Chain Constraints
- Whether the resurgence in material shortages and rising transportation costs will persist into Q4, impacting manufacturing output and costs.
- Regional Disparities
- How the divergent trends in supply chain volatility across Asia, North America, Europe, and the U.K. will affect global manufacturing strategies.
- Demand Sustainability
- The pace at which global manufacturing demand continues to strengthen and whether it will outstrip supply chain capacity.