The general cost of materials, components and finished goods are likely to follow suit in sectors where excess demand reverts to oversupply. However, significant supply chain risks and supply constraints persist and will continue to drive global supply chain restructuring and investment in productivity-enhancing technologies into 2023.
Lower consumer demand, shipping costs and oversupply of lower-margin consumer goods will ease price pressures but flag much weaker GDP.
COVID-19 rules, supply shortages, trade tensions and low-margin suppliers in poor financial shape threaten supply chains and capacity.
US-China decoupling and supply localisation will persist as geopolitical and environmental risks affect decisions on location and sourcing.
Incentives to cut emissions and build capacity will speed up local sourcing, but trade in materials and low-margin goods will stay global.
The need for supply chain visibility, agility and efficiency will drive spending on technological solutions.
