Global supply chains remained slack in November: GEP index

Global supply chains continued to show excess capacity in November as manufacturers pulled back on purchasing, pointing to a weakening outlook heading into 2026, according to the latest GEP Global Supply Chain Volatility Index.

The headline index registered –0.29 for the month, indicating underutilization among suppliers worldwide. The steepest decline came in North America, where manufacturers cut orders ahead of the new year, driving the regional index down to –0.53, its lowest point since March.

Asia also remained soft, with firms holding back on purchasing amid weak global demand. China was the primary drag, though ASEAN markets such as Indonesia and Vietnam showed resilience. The region’s index inched up to –0.16 from –0.30.

Across Europe and the U.K., spare capacity widened overall, reflecting ongoing demand fragility. Europe’s index slipped to –0.33, while the U.K. saw a marked improvement to –0.20 — its strongest reading in a year — suggesting some stabilization in its manufacturing downturn.

“Companies are watching the U.S. Supreme Court closely, and most expect a pause or rollback in tariffs,” said John Piatek, vice-president of consulting at GEP. “With supply chains this slack, it remains a buyers’ market heading into 2026, and companies have real leverage to secure favorable terms for the year ahead.”

The report notes that shortages remain minimal, stockpiling is historically low and manufacturing backlogs are flat, signaling limited cost pressures in the coming months aside from potential tariff effects.

Global transportation costs rose slightly in November but stayed in line with historical averages. Labour shortages were only marginally above long-term trends, indicating little impact on production capacity.

The next release of the index is scheduled for Jan. 13, 2026.