Global supply chains face permanent disruption, WEF warns
Global supply chains are entering an era of permanent disruption, forcing companies and governments to rethink investment and production strategies, Geneva-based World Economic Forum (WEF) said.
WEF’s Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility report, released Monday, Jan. 19, and developed in collaboration with global management consulting firm Kearney, finds that disruption is no longer cyclical but permanent.
The report highlighted that nearly three-quarters of business leaders surveyed now prioritize resilience investments, with 74 percent viewing resilience not only as a risk-mitigation measure but also as a driver of growth.
Set against rising geopolitical fragmentation, rapid technological change, and mounting resource constraints, the report examines how governments and businesses can remain competitive as uncertainty becomes a defining feature of the global economy.
“Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for,” said WEF managing director Kiva Allgood.
“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,” Allgood added.
“The scale of the shift is already evident,” the report stressed. In 2025, tariff escalations among major economies reshaped more than $400 billion in global trade flows, while disruptions across major shipping routes pushed container shipping costs up 40 percent year-on-year.
It added that manufacturing output in advanced economies grew at its weakest pace since 2009, and more than 3,000 new trade and industrial policy measures were introduced globally—more than three times the annual level recorded a decade ago.
“These forces underscore why supply chain resilience has become a central determinant of national competitiveness and corporate strategy,” the report said.
WEF said a key feature of the report is the launch of the manufacturing and supply chain readiness navigator—a new digital tool designed to translate research insights into actionable intelligence. Built on leading global indices, the navigator helps governments diagnose competitiveness gaps and prioritize reforms, while enabling companies to assess infrastructure readiness and ecosystem maturity when making investment and location decisions.
It further highlighted national strategies shaping manufacturing competitiveness, including Ireland’s enterprise-led upskilling through Skillnet Ireland, China’s large-scale digital infrastructure investment under its New Infrastructure initiative, and Qatar’s real-time food supply dashboard that strengthens supply security through early, data-driven intervention.
“Supply chain disruption in 2026 will be constant and structural,” said Per Kristian Hong, partner at Kearney. “Geopolitical fragmentation, shifting trade rules, and labor shortages are redefining how value is created and moved. The priority for supply leaders is no longer forecasting disruption, but redesigning operating models to function under permanent uncertainty.”