Nearly three in four business executives now view supply chain resilience as a primary driver of growth rather than a defensive measure, according to a World Economic Forum (WEF) report released Sunday in Davos.
The Global Value Chains Outlook 2026 reveals that 74 percent of business leaders have fundamentally shifted investment strategies to prioritize resilience amid what the WEF characterizes as structural volatility driven by geopolitical fragmentation, technological acceleration and energy transition pressures. The report drew insights from over 100 consultations with industry, government and academic leaders alongside survey data from more than 300 senior executives.
Tariff escalations between major economies in 2025 reshuffled more than $400 billion in global trade flows, while disruptions across major shipping routes pushed container shipping costs up 40 percent year over year. Manufacturing output across advanced economies is growing at its weakest pace since 2009, while governments introduced more than 3,000 new trade and industrial policy measures globally in 2025 alone, triple the annual level recorded a decade ago.
Kiva Allgood, Managing Director at the WEF, stated that volatility is no longer a temporary disruption but a structural condition leaders must plan for. Competitive advantage now comes from foresight, optionality and ecosystem coordination, she explained. 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.
The report launches the Manufacturing and Supply Chain Readiness Navigator, a digital tool that translates insights into actionable intelligence. Drawing on leading global indices, the platform supports strategic decision making on industrial policy and manufacturing footprint design. Governments can use it to diagnose competitiveness gaps and prioritize reforms, while companies assess infrastructure readiness and ecosystem maturity when making location and investment decisions.
Per Kristian Hong, Partner at Kearney, which collaborated on the report, emphasized that supply chain disruption in 2026 will be constant and structural. Geopolitical fragmentation, shifting trade rules and labor shortages are redefining how value is created and moved, according to Hong. The priority for supply leaders is no longer forecasting disruption but redesigning operating models to function under permanent uncertainty.
The report highlights successful national approaches already shaping manufacturing competitiveness. Ireland’s Skillnet Ireland links government, business and educators to deliver subsidized training aligned with industry needs through enterprise led upskilling. China’s New Infrastructure initiative enabled real time industrial connectivity through widespread 5G deployment via large scale investment in digital infrastructure. Qatar developed a national dashboard tracking essential food items in real time to strengthen supply security by enabling early intervention, buffer stocks and rapid data driven responses to disruption.
Tamil Nadu in India emerged as one of the country’s most reliable industrial destinations through political stability, consistent regulation, tailored incentives, strong infrastructure and skilled talent. The state’s stable and predictable investment climate demonstrates how subnational governments can attract manufacturing despite broader economic uncertainty.
The structural shift away from efficiency driven supply chains toward adaptive networks represents a fundamental rethinking of how products are made and moved globally. Companies are moving away from just in time inventory systems that minimize costs toward just in case approaches that prioritize continuity and flexibility.
The WEF findings align with broader economic assessments released during the Davos gathering. The International Monetary Fund (IMF) projected global growth would slow from 3.3 percent in 2024 to 3.2 percent in 2025 and 3.1 percent in 2026, with advanced economies growing around 1.5 percent and emerging market economies just above 4 percent.
The WEF Chief Economists’ Outlook released alongside the supply chain report noted that views for 2026 remain tilted toward the negative despite improvement compared with late 2025. Amid stretched asset valuations, rising public debt and geopolitical tensions, uncertainty remains elevated.
Growth perspectives for the United States (US) are improving driven by strong artificial intelligence related investment. Europe confronts weak growth and geoeconomic challenges, while China navigates deflationary headwinds alongside a rebalancing of trade and consumption. South Asia stands out as the region with the strongest growth outlook among surveyed chief economists.
The report arrives as President Donald Trump’s appearance at Davos puts global trade relations on edge. Trump threatened 10 percent tariffs on eight European nations starting February 1, escalating to 25 percent by June unless Europe agrees to facilitate the purchase of Greenland. The European Union (EU) prepared retaliatory tariffs on up to €93 billion worth of American goods in response.
Supply chain experts warn that prolonged trade policy uncertainty could accelerate the shift toward regional manufacturing hubs and nearshoring strategies. Companies increasingly adopt multi local value chains that reduce dependence on single sourcing locations and create optionality to shift production based on changing conditions.
The WEF’s 56th Annual Meeting takes place from January 19 to 23 in Davos Klosters, Switzerland, under the theme A Spirit of Dialogue. The gathering convenes leaders from business, government, international organizations, civil society and academia to address global economic stability, trade relations and geopolitical risk.
