CEOs in Europe and the U.S. Confront Supply Chain Resilience and Disruptions in 2024

Global Business Leaders Grapple with Decarbonization, AI Integration, and Labor Issues Amid a Shifting Trade Landscape

A new survey of 3,000 CEOs from the United Kingdom, Europe, and the United States has revealed widespread concerns over supply chain disruptions and resilience in 2024. The findings, part of the 2024 Supply Chain Barometer report released by consulting firm Proxima, show that business leaders are grappling with the challenges posed by geopolitical, economic, and environmental pressures.

The report provides a “critical temperature check” on how CEOs are navigating the evolving global trade environment. With globalization increasingly shifting towards more regionalized and “friendly” trading zones, supply chains are being restructured to cope with these new dynamics.

In the United States, the survey highlights specific concerns for CEOs around “right shoring,” AI integration, decarbonization, and labor-related issues. Key findings for U.S. business leaders include:

87% of CEOs acknowledge resilience issues within their supply chains.
96% of CEOs are dedicating the same or more time to supply chain matters this year compared to previous years.
Right-shoring trends: 44% of CEOs have initiated or are planning onshoring, 41% are nearshoring, 41% are adopting friendshoring, and 35% are considering offshoring.
AI integration: 99% of CEOs are already using or exploring AI to improve supply chains, with 82% planning new AI initiatives in 2024.
Human rights concerns: 63% of CEOs express worry about potential labor issues in their supply chains.
Decarbonization challenges: 99% report barriers to decarbonization efforts, with 30% citing complexity as the biggest obstacle.

Simon Geale, Executive Vice President and Chief Procurement Officer at Proxima, underscored the global complexity of modern supply chains. He noted that while business leaders are making strides to address these challenges, human rights concerns and the intricacies of decarbonization remain significant hurdles. Alongside priorities like “right shoring” and AI investments, there is also a clear focus on cost reduction for the year ahead.

The report illustrates the mounting pressures faced by CEOs as they seek to balance sustainability, innovation, and cost efficiency in a rapidly changing global landscape.