Manufacturers stockpile at pandemic-era rates as supply chain strain persists

Global manufacturers are continuing to build buffer inventories at rates not seen since the pandemic-era supply chain crisis, according to the latest GEP Global Supply Chain Volatility Index released on July 13. The index, produced by GEP and S&P Global ↗ 1.52%, signals that supply chain capacity remains under strain worldwide as businesses rush to protect against anticipated inflation and shortages in the second half of 2026.prnewswire+1

The findings arrive alongside a separate survey from Proxima showing that half of global CEOs feel dangerously exposed to disruption, underscoring a broader shift in corporate strategy toward paying a premium for resilience.

Supply Chains Under Strain for Third Straight Month

The June 2026 GEP Global Supply Chain Volatility Index registered at 1.55, with safety stockpiling, shortages, and transportation costs all elevated for three consecutive months — a pattern rarely observed outside the 2021–2023 supply chain crisis. North America saw pressures climb to their highest level since August 2022, while Asia remained the most strained region globally with a reading of 2.96.gep

The index, derived from S&P Global's PMI surveys covering approximately 27,000 companies across more than 40 countries, showed manufacturers front-loading purchasing activity to guard against expected higher prices later this year.youtube+1

CEOs Willing to Pay for Resilience

Proxima's Global Supply Chain Resilience Outlook, based on a survey of more than 500 CEOs at businesses generating over $500 million in annual revenue across the UK, USA, Australia, Singapore, and Germany, found that 51% of global CEOs say their businesses could not maintain day-to-day operations for more than three weeks if a major supply chain shock occurred. Nearly three-quarters (72%) said they would accept a cost increase of more than 10% on third-party supplier costs to guarantee resilience, with the mean acceptable uplift at 17.3%.eightx+2

"CEOs are further recognising the substantial costs and vulnerabilities their companies could face from supply chain disruption, and it is now clear many are willing to pay a premium to guard against that risk," said Simon Geale, executive vice president at Proxima. "Resilience has become a boardroom topic and a price worth paying."logisticsbusiness

Threats on Multiple Fronts

The Proxima survey also found that nearly half (45%) of businesses have experienced a supply chain disruption caused by a cyber incident in the past 24 months, yet only 35% have real-time visibility into the cyber risk of their critical suppliers. CEOs cited a range of threats including geopolitical tensions, emerging technologies, climate change, and protectionist trade policies such as tariffs as posing roughly equal financial challenges to their supply chains.logisticsbusiness