Manufacturing Procurement Rose as Supply Shortages Grew
Global manufacturers boosted raw material buying in September, facing higher transport costs and renewed supply chain shortages.
Updated on Oct. 12, 2026 in Manufacturing
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Global manufacturers significantly increased their procurement of raw materials and components in September 2026 as underlying demand strengthened. This surge marks the first instance of rising global supply chain shortages since May 2026.
Why it matters
Rising transportation costs linked to oil prices and thinning safety buffer inventories are complicating production planning for operators. The shift suggests that strengthening demand is currently outpacing the availability of essential inputs.
The GEP Global Supply Chain Volatility Index, which tracks 27,000 businesses across 40 countries, reported a significant uptick in purchasing activity across the U.S., Germany, Taiwan, and South Korea. This activity comes as transportation cost inflation intensifies.
The players
GEP
A global procurement software and supply chain consulting firm that provides market intelligence to enterprise manufacturers.
The details
Manufacturers are aggressively restocking, leading to a decline in safety buffer inventories across global operations. While backlogged orders resulting from staff shortages have decreased, the primary operational challenge has shifted toward rising transport costs and shortages in oil and oil-based inputs. Operators must now navigate higher logistical expenses even as overall production activity remains firm.
Timeline
May 2026: Last period when supply chain shortages previously increased.
September 2026: Manufacturers accelerated purchasing of raw materials and components.
November 11, 2026: Scheduled release date for the next GEP Global Supply Chain Volatility Index.
Market Landscape
This activity aligns with the trend monitored by the GEP Global Supply Chain Volatility Index, which provides a comparative view of supply chain health across 40 countries. The current data updates the global procurement baseline established in May 2026.
Operators should review their logistics budgets immediately to account for rising transportation costs driven by oil price volatility. Assess current inventory buffer levels to ensure they can withstand renewed supply constraints expected throughout the final quarter of 2026.
The takeaway
Rising procurement activity and thinning buffers signal a shift back to a supply-constrained environment. Monitor your specific input costs and track the upcoming November 11 report to adjust your Q4 inventory strategies.
What happens next
The next GEP Global Supply Chain Volatility Index update is scheduled for release on November 11, 2026.
Further reading
For broader trends in production, see the Manufacturing section.
More information
Review the full GEP Global Supply Chain Volatility Index for updated regional figures.
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Do you believe recent supply chain trends suggest higher prices for consumer goods soon?
