Geopolitical risk has overtaken logistics disruptions and input shortages as the main source of supply chain trouble reported by firms, with tariffs and regulatory requirements now seen as bigger barriers to trade than physical disruption itself. Nearly two-thirds of EU firms report being prepared for geopolitical risks, and the study finds a shift in how companies are responding: rather than leaning on short-term measures such as stockpiling, firms are increasingly diversifying suppliers and trading partners, with the EU single market itself cited as a source of stability amid external volatility. Product quality and employee skills remain the strengths firms rely on to stay competitive, while rising costs and uncertainty are flagged as the main threats, and export prospects stay broadly positive even as firms exposed to the US and China report greater caution. For manufacturing companies weighing their own supplier diversification or stockpiling strategy, the survey gives a benchmark against which to compare their own preparedness, while the authors are explicit that firm-level adaptation alone will not be enough, resilience will also depend on a supportive policy environment, a point that links this report to the specific measures on steel, critical raw materials and CBAM already shaping input costs and supply availability across the sector.

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