As global trade enters a new era, supply chain executives in Asia are grappling with significant challenges. Recent findings from the Economist Impact and DP World reveal that nearly three-quarters of businesses worldwide are rethinking their supply chain strategies. This shift is primarily driven by geopolitical uncertainties and economic pressures that continue to shape the landscape for 2025.
The survey of over 3,500 supply chain leaders revealed a marked increase in the use of multiple suppliers as firms seek to mitigate risks associated with rising protectionism and instability. Notably, countries perceived as non-aligned—such as Vietnam, India, and Brazil—are emerging as critical trade hubs. A striking 71% of executives acknowledge that these nations play a vital role in reducing trade risks, with 69% viewing them as essential for filling supply gaps created by geopolitical conflicts.
Economic concerns also loom large, with over a third of executives citing prolonged inflation and high interest rates as their primary challenges. Sultan Ahmed bin Sulayem, group chairman and CEO of DP World, remarked, "Global trade today is more complex than ever, demanding agility, resilience, and innovation." He emphasised the importance of leveraging local expertise and advanced technology to navigate these turbulent times.
In response to these complexities, many companies are adopting strategies such as friendshoring—relocating supply chains to politically aligned countries—and dual sourcing to diversify risk. About 34% of businesses are actively pursuing friendshoring as a means to navigate the increasing tensions among global powers.
"In 2025 and the foreseeable future, global trade will be shaped by shifting geopolitics, climate change, and the rise of AI and automation," said John Ferguson, global lead at Economist Impact. He stressed that firms must remain agile and cost-efficient to thrive in this evolving landscape.
As businesses in Asia adapt to these changes, the focus is clearly on building more resilient and flexible supply chains. This includes not only diversifying supplier bases but also investing in advanced technologies to improve efficiency and visibility across the supply chain.
The landscape of global trade is undoubtedly shifting, and companies that embrace these changes will be better positioned to succeed in an increasingly fragmented world. The need for adaptability and innovation has never been more critical, as the challenges of 2025 loom on the horizon.
