Global supply chains are undergoing a fundamental shift, transitioning from a focus on efficiency to prioritizing resilience in the face of "structural volatility," according to a new report by the World Economic Forum (WEF). The report, "Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility," was released at the WEF Annual Meeting in Davos. It reveals that disruption is no longer a temporary setback but a permanent characteristic of the global economy.
The WEF report identifies several factors driving this volatility, including geopolitical fragmentation, rapid technological advancements, and increasing constraints on resources. Escalating tariffs in 2025, for instance, led to a reshuffling of over $400 billion in global trade flows. Simultaneously, disruptions across major shipping routes caused container shipping costs to surge by 40% year-on-year. Furthermore, manufacturing output in advanced economies experienced its weakest growth since 2009, despite the implementation of numerous new trade and industrial policies globally.
This new reality is forcing businesses and governments to rethink their investment and production strategies. The report highlights a significant shift in priorities, with nearly three in four business leaders now prioritizing investments in resilience. Notably, 74% of executives view resilience not just as a defensive measure but as a primary driver of growth. This indicates a move away from solely focusing on cost optimization towards building adaptive networks that can withstand and respond to unforeseen challenges.
Kiva Allgood, Managing Director at the WEF, emphasizes that "Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for". Allgood suggests that "Competitive advantage now comes from foresight, optionality, and ecosystem coordination". Companies and countries that cultivate these capabilities will be better positioned to attract investment, secure supply chains, and sustain growth in an increasingly fragmented global landscape.
To assist leaders in navigating this "new normal," the WEF has launched the Manufacturing and Supply Chain Readiness Navigator. This digital tool is designed to help governments diagnose competitiveness gaps and allows companies to assess infrastructure and ecosystem maturity when making investment decisions.
The report also showcases successful national models, including China's 5G-led industrial connectivity, Ireland's enterprise-led upskilling programs, and Qatar's real-time food security dashboards. Additionally, Tamil Nadu in India is cited as a prime example of a stable and predictable investment climate, attracting long-term global investments through consistent regulation, tailored incentives, strong infrastructure, and a skilled workforce.
Per Kristian Hong, Partner at Kearney, notes that "Supply chain disruption in 2026 will be constant and structural". He argues that the priority for supply leaders is no longer forecasting disruption but redesigning operating models to function under permanent uncertainty, shifting from efficiency-driven supply chains to adaptive networks.
