Supply chains around the world have entered an era of ‘structural volatility’, which will require businesses and government to re-evaluate how and where they invest, the World Economic Forum has said in a new report.
According to the report, Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility, which was developed in collaboration with Kearney, supply chain disruption is now a ‘permanent feature, rather than a cyclical shock’, with three in four (74%) business leaders now viewing resilience as a driver of growth.
‘A structural condition’
“Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for,” commented Kiva Allgood, managing director, World Economic Forum. “Competitive advantage now comes from foresight, optionality and ecosystem coordination. Companies and countries that build these capabilities together will be best positioned to attract investment, secure supply and sustain growth in an increasingly fragmented global economy.”
As the report notes, tariff escalation last year redirected more than $400 billion in trade flows, while disruptions to major shipping routes pushed container shipping costs up by 40%, year-on-year. In addition, manufacturing output across advanced economies is growing at its slowest pace for more than 15 years, despite the introduction of new trade and industrial policy measures.
‘Together, these forces underscore why supply chain resilience has become a central determinant of national competitiveness and corporate strategy,’ the World Economic Forum commented.
The report seeks to set out a ‘dual way forward’, defining key imperatives for industry and a blueprint for industrial policy, as well as introducing a complementary interactive tool that can help businesses and governments assess manufacturing risks, strengths and gaps.
It was published as the World Economic Forum’s annual meeting in Davos, Switzerland, kicks off on 19 January.
‘Redesigning operating models’
“Supply chain disruption in 2026 will be constant and structural,” added Per Kristian Hong, Partner, Kearney. “Geopolitical fragmentation, shifting trade rules and labour shortages are all redefining how value is created and moved.
“For supply leaders, the priority is no longer forecasting disruption, but redesigning operating models to function under permanent uncertainty. That means moving away from efficiency-driven supply chains and towards adaptive networks that can be reconfigured with optionality as conditions change.” Read more here.
[Photo: World Economic Forum/Jason Alden]
