Global value chains have entered a period of structural volatility, prompting companies and governments to rethink where and how they invest and produce, according to a World Economic Forum report released on Monday. Nearly three-quarters of business leaders surveyed now prioritise resilience investments, with 74% viewing resilience as a driver of growth.

Key findings of the report

The report, Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility, developed in collaboration with Kearney, argues that disruption has shifted from a cyclical shock to a permanent condition. It comes amid growing geopolitical fragmentation, rapid technological change and increasing resource constraints that are reshaping global trade and manufacturing.

“Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for,” said Kiva Allgood, Managing Director at the World Economic Forum. “Competitive advantage now comes from foresight, optionality and ecosystem coordination.”

Scale of shift

Recent data illustrate the scale of the shift. In 2025, tariff escalations between major economies redirected more than $400 billion in global trade while disruptions to key shipping routes drove container shipping costs up 40% year on year. Manufacturing output across advanced economies is growing at its slowest pace since 2009, and more than 3,000 new trade and industrial policy measures were introduced globally in 2025, more than triple the annual level seen a decade ago.

The report introduces the Manufacturing and Supply Chain Readiness Navigator, a digital tool designed to translate these findings into practical guidance. Drawing on global indices, the tool aims to support governments in identifying competitiveness gaps and prioritising reforms, while helping companies assess infrastructure readiness and ecosystem maturity when making investment decisions.

National initiatives shaping manufacturing competitiveness

It also highlights national initiatives shaping manufacturing competitiveness. Ireland’s Skillnet Ireland links government, business and educators to deliver subsidised, industry-aligned training. China’s New Infrastructure initiative has accelerated industrial connectivity through large-scale investment in 5G and digital systems. In Qatar, a real-time national dashboard tracking essential food items strengthens supply security by enabling early intervention and data-driven responses to disruption.

“Supply chain disruption in 2026 will be constant and structural,” said Per Kristian Hong, Partner at Kearney. “The challenge for leaders is no longer forecasting disruption, but redesigning operating models to function under permanent uncertainty.”

The Global Value Chains Outlook 2026 is based on more than 100 consultations with leaders from industry, government, and academia, as well as survey data from over 300 senior executives. The report is released ahead of the World Economic Forum’s 56th Annual Meeting, which will take place in Davos-Klosters, Switzerland, from 19 to 23 January, under the theme A Spirit of Dialogue.

World Economic Forum report

Davos 2026: Global supply chains face structural volatility, says World Economic Forum report