CLARK, N.J.,March 12, 2025/PRNewswire/ -- GEP Global Supply Chain Volatility Index — a leading indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses — fell to -0.45 in February, from -0.21 in January, its lowest level sinceJuly 2023. While the index shows that overall supply chain capacity became more underutilized globally, regional data reveals significant geographical differences.
In the U.S., manufacturers'demand for raw materials and components saw a notable uptick in February, reflecting a mix of preparations for orders and efforts to avoid higher costs from additional tariffs. U.S. factories also reported accelerating sales growth as their customers acted to front-run price and supply challenges arising from tariffs, driving up procurement. Efforts to mitigate tariffs also propelled stockpiling by U.S. manufacturers in February.
In stark contrast, Mexican and Canadian manufacturers harshly reduced their purchases in response to a rapid reduction in exports as U.S. companies refrained from placing orders due to the threat of tariffs and trade policy uncertainty.
InEurope, manufacturers are making inventories cutbacks. The continent's supply chains continue to be underutilized as the industrial sector remains sluggish. That said, there does appear to be some early indication of recovery as the downturn in factory demand for inputs cooled to its weakest in two-and-a-half years.
Asiasupply chains continue to be at full capacity in February, as was the case at the start of the year, making them the most active globally. Factories in parts of the region such asChina,TaiwanandIndiareported strong export growth.
"With tariffs driving uncertainty, U.S. manufacturers are racing to secure materials, while Canadian and Mexican suppliers are feeling the squeeze from weaker export demand. In contrast,Asia'ssupply chains are operating at full capacity, fueled by strong export growth,"said Krish Vengat N., GEP's vice president of consulting."Companies must remain agile—diversifying supply sources and optimizing inventory strategies to navigate this ongoing volatility."
Interpreting the data:
Index> 50 means growth. The further above 50, the faster the growth
Index< 50 means decreasing. The further below 50, the larger the contraction.
Interpreting the data:
Index> 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains are.
Index< 0, supply chain capacity is beingunderutilized. The further below 0, the moreunderutilized supply chains are.
FEBRUARY 2025KEY FINDINGS
REGIONAL SUPPLY CHAIN VOLATILITY
For more information, visitwww.gep.com/volatility.
Note: Full historical data dating back toJanuary 2005is available for subscription. Please contacteconomics@spglobal.com.
The next release of the GEP Global Supply Chain Volatility Index will be8 a.m. ET,Apr. 10, 2025.
About the GEP Global Supply Chain Volatility Index
TheGEP 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 forEurope,Asia,North Americaand the U.K. For more information about the methodology, clickhere.
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 inClark, New Jersey, GEP has offices and operations centers acrossEurope,Asia,Africaand the Americas. To learn more, visit www.gep.com.
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