#USA #North America #Clark #China Manufacturing #GEP Global Index

China’s Manufacturing Surge

In September 2025, the GEP Global Supply Chain Volatility Index unveiled a notable trend in global manufacturing dynamics, highlighting an impressive increase in purchasing activities among Chinese manufacturers. This surge has catapulted Asia, particularly China, to the forefront of the global supply chain, achieving the busiest operational pace since June 2022. With the world's second-largest economy ramping up its production and sales, the uptick has revitalized the region’s supply chains, moving them closer to maximum utilization.

Contrastingly, North America is experiencing a downturn in manufacturing vitality. Manufacturers in the region have expressed concerns regarding tariff-related disruptions along with a dimming economic outlook. These apprehensions have led many to curtail their purchasing habits, thereby diminishing their inventory reserves. This deceleration in North American manufacturing raises pressing questions about the region's long-term industrial strategy and resilience against global fluctuations.

Regional Insights

Asia

September brought a remarkable revival of factory activities in China, revealing the strongest spike in input purchasing across Asia in ten months. This escalated demand is attributed to China’s robust economic policies and an aggressive strategy to boost production capabilities. The factories are responding dynamically to meet growing consumer requirements, marking a pivotal moment for the East Asian supply chain.

North America

In contrast, North American manufacturers exhibited significant reticence towards further stockpiling during September. Following a substantial replenishment efforts in August, there is a palpable hesitance stemming from concerns over economic uncertainties. Companies are facing delivery delays and logistics challenges, which are partially due to the ongoing tariff pressures—factors that impede their strategic purchasing decisions.

Europe

Meanwhile, Europe remains in a state of recovery sluggishness. Countries such as Germany, France, and Italy are reporting diminishing procurement activities, contributing to the lowest index levels since March. The region’s factories are grappling with low demand and overstocked inventories, indicating a prolonged industrial downturn that could affect their competitive edge in global markets.

Key Takeaways

The fluctuations in global manufacturing and procurement patterns reveal a new normal characterized by increased costs and pressures from tariffs. John Piatek, Vice President of Consulting at GEP, noted that for supply chain leaders, these conditions signal a need for decisive action to adapt and implement revised strategies effectively. As they navigate through these turbulent waters, businesses must innovate and streamline their operations to emerge resilient.

Demand and Inventories

Interestingly, September also marked a shift in the frequency of stockpiling activities. Manufacturers globally have shown decreased concern regarding inflation and supply issues, suggesting a more stabilized procurement climate. This reassessment is mirrored by the decreasing global supply shortages, allowing factories better access to necessary materials and components, thereby revitalizing production potential.

Transportation and Labor Shortages

Transportation costs have returned to historic norms, alleviating some prior burdens faced by manufacturers. Additionally, labor shortages that previously led to significant backlogs have reportedly subsided, enabling companies to optimize their staffing and operational capacities efficiently.

With the GEP Global Supply Chain Volatility Index indicating a nuanced landscape ahead, industries are encouraged to strategically embrace fresh methodologies and strengthen their resilience to better respond to both opportunities and challenges that lie ahead.