NORTH AMERICAN MANUFACTURERS BEGIN STOCKPILING TO BUFFER AGAINST TARIFFS WHILE ASIAN SUPPLIERS RECORD RENEWED GROWTH AS CHINESE MANUFACTURING REBOUNDS, DRIVEN BY STIMULUS AND EXPORTS: GEP GLOBAL SUPPLY CHAIN VOLATILITY INDEX

Indeed, in North America, reports of safety stockpiling were at their most pronounced since July, highlighting how procurement managers have already implemented changes to their inventory strategies as a result of the incoming US administration's public commitment to impose significant tariffs. Subsequently, a pickup in activity across North American supply chains resulted in fewer vendors with idle capacity. In fact, our index tracking the region's supply chain activity hit a four-month high in November.

Meanwhile, in Europe, suppliers feeding this part of the world saw spare capacity rise further — a contrast to elsewhere — primarily because of the continent's worsening industrial recession. Factories went deeper into retrenchment mode, according to our data, as demand for inputs from manufacturers here was its weakest since December 2023. Germany continues to be at the forefront of this prolonged and significant slowdown.

"In November, U.S. manufacturers, particularly in the consumer goods sector, increased their safety stocks to help blunt any immediate tariff increases," said John Piatek, vice president, GEP. "In contrast, Chinese manufacturers are getting busier as a result of government stimulus and growth in exports, led by automotives and technology products. Strategically, many global companies have a wait-and-hope approach, while simultaneously planning to remake their global supply chains to respond to a tariff and trade war in 2025 and beyond."

NOVEMBER 2024 KEY FINDINGS

REGIONAL SUPPLY CHAIN VOLATILITY

For more information, visit www.gep.com/volatility.

Note: Full historical data dating back to January 2005 is available for subscription. Please contact [email protected].

The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, Jan. 13, 2025.

About the GEP Global Supply Chain Volatility Index
The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global's PMI^® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global.

A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the U.K. For more information about the methodology, click here.

About GEP
GEP^® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world's best companies, including more than 1,000 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP's cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit www.gep.com.

About S&P Global
S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through ESG and energy transition across supply chains, we unlock new opportunities, solve challenges and accelerate progress for the world. We are widely sought after by many of the world's leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world's leading organizations plan for tomorrow, today.

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