Global manufacturing orders hit four-year high as factories ramp up production

Asia led the global bounce-back whilst Europe lagged in procurement activity.

Global demand for manufacturing materials surged in January to its highest level since May 2022, according to the GEP Global Supply Chain Volatility Index, which tracks 27,000 businesses worldwide.

Factories across Asia drove the resurgence, with Chinese, Japanese, Korean and Indian manufacturers significantly increasing their purchases of raw materials and components. The region's supply chains were at their busiest since November 2024.

North America also regained momentum after a fourth-quarter slowdown in 2025, with US industrial firms demonstrating resilience and greater willingness to build up inventories. Supply chain capacity on the continent reached its most stretched level in 18 months.

Europe remained the weakest performer, with manufacturers still hesitant to restock warehouses, though there were tentative signs of improvement.

"Despite tariffs and trade uncertainty, manufacturers are showing real resilience, supported by a declining cost of capital that's giving procurement teams greater flexibility," said John Piatek, vice president of consulting at GEP.

Material shortages remained below historical averages, suggesting procurement leaders aren't overly concerned about supply disruptions or price inflation. However, rising oil prices in January pushed up transportation costs.

The index, which measures demand conditions, shortages, transport costs, inventories and backlogs, showed supply chain volatility increased in Asia and North America whilst spare capacity remained prevalent in Europe and the UK.