DAVOS 2026: Global value chains enter era of structural volatility, says WEF
WEF Davos 2026: Nearly three in four business leaders now prioritise resilience investments, with 74% seeing resilience as a key driver of growth.
- Jan 19, 2026,
- Updated Jan 19, 2026 1:07 PM IST
Global value chains have entered an era of structural volatility, according to a new World Economic Forum report released today. This has prompted companies and governments to reconsider their investment and production strategies. Nearly three in four business leaders now prioritise resilience investments, with 74% seeing resilience as a key driver of growth. This shift reflects how firms are adapting to ongoing uncertainty and disruption in global markets.
The report, developed with Kearney, identifies geopolitical fragmentation, rapid technological changes, and increasing resource constraints as the main causes of volatility. Disruption has become a permanent feature, requiring new approaches to maintain competitiveness. Companies and policymakers must now build agility into their operations as a core strategy, it said.
To aid these efforts, the World Economic Forum has introduced the Manufacturing and Supply Chain Readiness Navigator. This digital tool translates insights into actionable intelligence by drawing from leading global indices. It helps governments identify competitiveness gaps and assists companies in assessing infrastructure readiness and ecosystem maturity for investment decisions.
The scale of change is evident in recent data. In 2025, tariff increases between major economies reshaped over $400 billion in global trade flows. Disruptions in key shipping routes caused container shipping costs to rise by 40 per cent year on year. Manufacturing output in advanced economies fell to its lowest level since 2009. Additionally, over 3,000 trade and industrial policy measures were implemented globally in 2025, three times the number seen a decade earlier.
These developments highlight why supply chain resilience is now central to national competitiveness and corporate strategy. Per Kristian Hong, Partner at Kearney, said, "Supply chain disruption in 2026 will be constant and structural. Geopolitical fragmentation, shifting trade rules and labour shortages are redefining how value is created and moved."
Hong added, "For supply leaders, the priority is no longer forecasting disruption but redesigning operating models to function under permanent uncertainty. This means moving away from efficiency-driven supply chains towards adaptive networks that can be reconfigured as conditions change."
Kiva Allgood, Managing Director at the World Economic Forum, said, "Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for." She added, "Competitive advantage now comes from foresight, optionality and ecosystem coordination. Companies and countries that build these capabilities together will be best positioned to attract investment, secure supply and sustain growth in an increasingly fragmented global economy."
Global value chains have entered an era of structural volatility, according to a new World Economic Forum report released today. This has prompted companies and governments to reconsider their investment and production strategies. Nearly three in four business leaders now prioritise resilience investments, with 74% seeing resilience as a key driver of growth. This shift reflects how firms are adapting to ongoing uncertainty and disruption in global markets.
The report, developed with Kearney, identifies geopolitical fragmentation, rapid technological changes, and increasing resource constraints as the main causes of volatility. Disruption has become a permanent feature, requiring new approaches to maintain competitiveness. Companies and policymakers must now build agility into their operations as a core strategy, it said.
To aid these efforts, the World Economic Forum has introduced the Manufacturing and Supply Chain Readiness Navigator. This digital tool translates insights into actionable intelligence by drawing from leading global indices. It helps governments identify competitiveness gaps and assists companies in assessing infrastructure readiness and ecosystem maturity for investment decisions.
The scale of change is evident in recent data. In 2025, tariff increases between major economies reshaped over $400 billion in global trade flows. Disruptions in key shipping routes caused container shipping costs to rise by 40 per cent year on year. Manufacturing output in advanced economies fell to its lowest level since 2009. Additionally, over 3,000 trade and industrial policy measures were implemented globally in 2025, three times the number seen a decade earlier.
These developments highlight why supply chain resilience is now central to national competitiveness and corporate strategy. Per Kristian Hong, Partner at Kearney, said, "Supply chain disruption in 2026 will be constant and structural. Geopolitical fragmentation, shifting trade rules and labour shortages are redefining how value is created and moved."
Hong added, "For supply leaders, the priority is no longer forecasting disruption but redesigning operating models to function under permanent uncertainty. This means moving away from efficiency-driven supply chains towards adaptive networks that can be reconfigured as conditions change."
Kiva Allgood, Managing Director at the World Economic Forum, said, "Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for." She added, "Competitive advantage now comes from foresight, optionality and ecosystem coordination. Companies and countries that build these capabilities together will be best positioned to attract investment, secure supply and sustain growth in an increasingly fragmented global economy."