Core Insights - Companies are expected to adopt short-term tactics to navigate ongoing volatility in tariffs and supply chain dynamics, as leaders frequently change their strategies [1][2][5] - The U.S. tariff regime will continue to challenge supply chains through 2026, with geopolitical tensions further complicating trade [3][8] - Companies that can quickly recognize and act on critical decision points will be better positioned to adapt their operations [4][6] Economic Landscape - Economic turbulence is anticipated to test supply chains in 2026, with consumer spending expected to decelerate due to affordability concerns and a softening labor market [11][12] - The sluggish housing market will impact demand for various household goods, affecting manufacturers [12] - Rising global debt levels may pose risks to suppliers, necessitating companies to stress test their supply chains for viability [13] Cost Optimization - Cost optimization will be a priority for companies in 2026 due to rising costs driven by fluctuating trade and economic factors [14] - Companies are likely to optimize their manufacturing and distribution networks to address underutilized capacity, potentially leading to plant closures and network consolidation [15][16] AI and Technology - The hype surrounding AI in supply chains may face recalibration as many companies have not yet realized the expected large-scale impacts from their investments [18][19] - Companies will focus on scaling AI responsibly, building data foundations and workforce skills to achieve measurable results [22][21] Workforce Challenges - The supply chain workforce will face significant changes in 2026 due to aging leadership, labor shortages, and the need for new skills [23][24] - Companies are investing in automation and talent development to optimize production, but challenges remain in finding skilled workers [25][26]