Tariffs and Trade Barriers: Top Concern for Supply Chain Leaders
A recent study conducted by Descartes Systems Group has shed light on the pressing challenges faced by supply chain leaders worldwide. Released on December 2, 2024, the study reveals that 48% of supply chain leaders identify tariffs and trade barriers as their foremost concern. This finding highlights the growing complexity of international trade and the need for organizations to adapt their strategies accordingly.
Key Findings from the Study
The 2024 Supply Chain Intelligence Report, developed in collaboration with SAPIO Research, surveyed 978 supply chain leaders across Europe, North and South America, and Asia-Pacific. The results indicate that:
- 48% of respondents ranked rising tariffs and trade barriers as their top concern.
- 45% cited supply chain disruptions as a significant issue.
- 41% identified geopolitical instability as a major challenge.
Interestingly, the concern over tariffs was more pronounced among companies anticipating growth; 51% of those expecting over 15% growth viewed tariffs as a critical issue compared to 43% of firms with limited or no growth.
Implications for Supply Chain Resilience
The findings underscore the necessity for organizations involved in international trade to enhance their supply chain analytics practices. To build more resilient networks, companies should focus on:
- Technology-Enabled Insights: Keeping pace with frequent and complex tariff updates.
- Market Identification: Quickly discovering new markets to diversify sourcing.
- Supply Security: Securing better sources of supply.
- Competitive Intelligence: Acquiring timely and high-quality information to stay ahead in the market.
Jackson Wood, Director of Industry Strategy at Descartes, emphasized that evolving tariffs and trade policies are among several complex issues requiring organizations to bolster resilience through compliance, technology, and strategic planning.
Potential Impact of U.S. Administration Change
With the incoming U.S. administration likely to impose new tariffs on various goods and countries, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potential cost increases. This shift could further complicate the landscape for businesses already grappling with existing trade barriers.
Conclusion
As global supply chains continue to navigate an increasingly challenging environment marked by tariffs and trade barriers, organizations must prioritize adaptability and resilience. The insights from Descartes’ study serve as a crucial reminder for supply chain leaders to leverage technology and strategic planning in order to thrive amid uncertainty.
Sources
- Descartes Systems Group: “Descartes Study Reveals Tariffs and Trade Barriers as Top Concern of 48% of Supply Chain Leaders” GlobeNewswire
- Descartes: “Tariffs and Trade Barriers Top Concern of Supply Chain Leaders” Descartes
- Food Logistics: “A study released by Descartes Systems Group and SAPIO Research” Food Logistics
- gCaptain: “Global Supply Chain Leaders Grapple with Rising Tariffs” gCaptain
- The SCXchange: “Descartes: businesses say top concern is tariff hikes” The SCXchange
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