Global supply chains set for overhaul next year, poll shows

“Businesses are operating in an increasingly complex global economic landscape, navigating a wide range of challenges,” says Barry O’Byrne, chief executive of HSBC’s global commercial banking unit.

HONG KONG: More than 40% of corporate decision-makers see an urgent need to overhaul their supply chains in 2023, with inflation, higher interest rates and weaker global trade acting as some of the stiffest economic headwinds, a new survey shows.

Just 11% of respondents in the HSBC Holdings Plc survey said transforming their supply chain wasn’t a priority next year, but 42% plan to do so and almost 47% see it as a priority at some stage in the future.

Conducted by the research firm Toluna, the poll covered 2,170 executives at medium-size companies in 14 countries from Sept 28 to Oct 24, according to the London-based bank.

The survey also showed concerns were broader than supply chains, with 51% of respondents saying their expect the environment for international trade to be harder next year.

That lines up with the latest forecasts from the World Trade Organisation for cross-border commerce to grow just 1% next year, after a projected 3.5% increase this year.

Asked about the biggest impediments to their business next year, 38% cited inflation, 32% pointed to higher interest rates and 27% said an uncertain political environment, the poll showed.

Overall, though, there was plenty of optimism about revenue prospects for the year ahead, according to the survey.

More than three-quarters expect sales growth to exceed 10% next year, with 19% of those respondents expecting revenue to increase by more than 20%.

“Businesses are operating in an increasingly complex global economic landscape, navigating a wide range of challenges,” Barry O’Byrne, chief executive of HSBC’s global commercial banking unit, said in a statement.

“Despite this, there is a strong sense of global resilience and ambition among mid-size businesses.” — Bloomberg