Half of corporate decision makers see trade barriers rising and plan to transform their supply chains in 2023
A deteriorating environment will drive strategic changes to supply changes in 2023
A survey by HSBC Holdings Plc shows that 47% of corporate decision makers plan to transform their supply chain next year, as opposed to just 11% who said such a move was not a priority in 2023.
Driving this change are worsening environment for international trade, which 51% expect next year. The drivers behind this deterioration expected by respondents are inflation (38%), higher interest rates (32%) and the uncertain political environment (27%).
However, more than 75% said they expected sales growth to exceed 10% next year with 19% even expecting an increase of more than 20%.
Respondents across the globe vary in their responses. Indian business leaders are the most optimistic about international trade with 45% expecting improvements, compared with 28% globally, and 70% are planning to enter at least one new foreign market.
Nonetheless, 58% in the country plan to improve the security of their supply chain, which sits in contrast to Australia, where only 18% will focus on supply chain security. Meanwhile, in Indonesia, 80% plan changes to their supply chain.
The research questioned 2,170 executives at medium-sized companies in 14 countries between 28 September and 24 October.