Tariffs, sweeping policy changes under the One Big Beautiful Bill, heightened geopolitical risk and the accelerating impact of artificial intelligence, is leading companies to rethink where and how they build their products and serve their customers. After decades of offshoring, fragile global supply chains and margin pressure, U.S. manufacturing, mining, and construction are entering a decisive new growth cycle.
Heightened geopolitical and logistics risks are making it difficult for companies to successfully navigate evolving global supply chain conditions while keeping customer and EBITDA growth goals intact. According to DP World, 82% of supply chain leaders view geopolitical disruption as a major risk, yet only a quarter feel fully prepared.
As geopolitical, tariff, and other supply chain risks are causing concerns with offshoring strategies and the global sourcing perspective, companies are reviewing domestic alternatives. Companies are moving towards domestic and regional supply chains and preparing to scale manufacturing and the extended supply chains.
Supply chains are evolving at a rapid pace as global risks increase. To achieve success with this transformation, companies must roll out advanced technologies and develop strategies to mitigate down-the-line risks and impacts such as access to critical minerals and energy.
Companies are pursuing a global reconfiguration and reallocation of resources and upgrades to secure their medtech supply chains.
Supply chain shortages have improved from their all-time high in Q1 2024. Yet, risks remain high, especially with the increased level of vulnerabilities.
Volatility, uncertainty, complexity, and ambiguity (VUCA) have plagued medtech’s supply chain since the pandemic. Drug shortages last year hit their highest levels in a decade, with 99% of hospital and health system pharmacists experiencing medicinal dearths, according to an American Society of Health System Pharmacists (ASHP) survey.
The medical device market is expected to grow by almost $178 billion from 2023 to 2027 according to Technavio. Moreover, a Fortune Business Insights Analysis estimates the market to reach $799 billion by 2030. With such significant growth, manufacturing and supply chains must scale and mitigate risk to ensure supplies to customers and patients.
COVID-19 may no longer be a significant public health threat, but the global supply chain remains chock full of risk. The threats are seemingly everywhere these days: The Israel-Hamas war, which is sabotaging trade routes in the Red Sea; extreme drought, which is curtailing shipping in the Panama Canal, and China’s military aggression, which is threatening lawful commerce in the South China Sea.
Although the supply chain challenges have abated since the COVID-19 pandemic, disruptions continue to persist and risks have increased. VUCA (volatility, uncertainty, complexity, ambiguity) has increased substantially in the world, negatively impacting the safety, security, and reliability of the supply chain.
