CEOs in Europe and the US Struggle with Supply Chain Disruptions and Resiliency in 2024

A survey of 3,000 CEOs from the United Kingdom, Europe, and the United States has revealed that company leaders are grappling with supply chain shocks and disruptions throughout 2024, with most highlighting significant resiliency issues within their supply chains. These findings are part of the 2024 Supply Chain Barometer report released this week by the consulting firm Proxima.

The report offers what Proxima describes as a “critical temperature check” on how business leaders are responding to various geopolitical, economic, and environmental challenges impacting supply chains. The results indicate that as globalization shifts towards more regional and “friendly” trading zones, supply chains are being continually redesigned and restructured.

For CEOs in the United States, key supply chain concerns include “right shoring,” the integration of artificial intelligence (AI), decarbonization efforts, and labor-related issues. The report’s key findings for U.S. business leaders show that:

• • 87% of CEOs recognize resiliency issues in their supply chains.
  • 96% of CEOs are dedicating as much or more time to supply chain matters this year compared to the past.
  • “Right shoring” trends reveal that 44% of CEOs have either initiated or are planning to undertake onshoring, 41% are moving towards nearshoring, 41% are adopting friendshoring, and 35% are considering offshoring.
  • 99% of CEOs are already using or are considering using AI to enhance their supply chains, with 82% planning new AI initiatives this year.
  • 63% of CEOs express concerns over potential human or labor rights issues within their supply chains.
  • 99% of CEOs report facing barriers to decarbonization, with 30% citing the complexity of the necessary work as the most significant obstacle.

Simon Geale, Executive Vice President and Chief Procurement Officer at Proxima, commented on the report’s findings, stating that the complexities of global supply chains continue to challenge CEOs worldwide. He emphasized that the survey results show business leaders are increasingly focused on tackling these supply chain challenges, which involve multiple dimensions. Geale also highlighted that concerns about human rights issues remain a significant worry, while the findings underline the intricate nature of the decarbonization challenge. He noted that alongside other priorities such as “right shoring” and investing in AI, there is a clear focus on cost reduction in the year ahead.

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