S&P Global(SPGI) Prnewswire·2025-03-12 12:17Core Insights - The GEP Global Supply Chain Volatility Index fell to -0.45 in February 2025, indicating a decrease in overall supply chain capacity utilization globally, marking the lowest level since July 2023 [1][11][18] - Regional disparities are evident, with the U.S. experiencing increased demand for raw materials, while Canadian and Mexican manufacturers reduced purchases due to export declines [2][3][6] Demand Conditions - In the U.S., manufacturers increased their demand for raw materials and components in February, driven by preparations for orders and efforts to avoid higher costs from tariffs [2][11] - Global demand for raw materials and components is trending at its long-term average, with the strongest buying activity in Asia [11] Inventory Management - Global stockpiling activity decreased in February, indicating a low appetite among manufacturers to hold excess stock amid rising production costs [11][18] - U.S. manufacturers are stockpiling materials in anticipation of higher tariffs, while European manufacturers are cutting inventories due to a sluggish industrial sector [4][11] Regional Supply Chain Analysis - North America: The index rose to -0.18, indicating the busiest conditions since July 2024, primarily due to U.S. performance [18] - Europe: The index fell to -0.72, signaling greater slack in supply chains compared to earlier in the year [18] - U.K.: The index dropped to -0.85, the lowest since December 2023, indicating a slowdown in the economy [18] - Asia: The index remained at 0.00, showing that supply chains are operating at full capacity, supported by strong export growth from countries like China, Taiwan, and India [5][18] Transportation and Labor Conditions - Global transportation costs remained unchanged from January, maintaining levels close to historical norms [18] - Reports of labor shortages impacting production backlogs have decreased, suggesting improved staffing conditions in global manufacturing [18]