ISM, on Febrary 3, offered its analysis of trends that companies will be facing in 2025. The group notes that "building on the lessons learned in 2024, businesses will adopt strategies and supporting technologies to strengthen their supply chains against volatility and disruptions."
The article also noted that companies will be leveraging advanced intelligence gained from greater transparency across the entire supply chain to mitigate potential risks.
The following are some trends: (excerpted)
New Trade Partnerships
With President Donald Trump having just taken office, the global community will be closely watching for decisions on the proposed tariff increases impacting international trade. Announced this past weekend: an additional 10% tariff on Chinese goods (on top of existing tariffs) and increases to 25% for imports from Mexico and Canada, though the latter were paused for 30 days on Monday. Tariffs ranging from 10% to 20% for European Union products remain possible.
In response, U.S. businesses may pivot toward domestic suppliers or nearer-shore alternatives, an outcome openly promoted by the new government to stimulate national growth. Although this will create complexities and could drive up costs for businesses and end consumers, nearshoring could shorten supply chains and improve logistical control while having a positive environmental impact by reducing the distance that goods travel.
Added Transparency with Suppliers
Implementing seamless, streamlined systems for information sharing can create an environment conducive to innovation and facilitate the development of strategies such as identifying alternative shipping routes, sourcing new raw materials or components, and co-investing in technologies to improve efficiency and enhance end products.
Sourcing From Emerging Markets
Sourcing from emerging markets helps diversify and risk-proof the supply chain, potentially mitigating the impact of tariffs but also contributing to sustainability, provided that suppliers are chosen from regions with lower carbon footprints or abundant renewable energy sources.
