Spare capacity persists in global supply chains in November

Spare capacity persisted in global supply chains in November, according to GEP’s monthly Global Supply Chain Volatility Index report.

The headline index rose slightly to -0.29 in November from -0.33 in October. A value above 0 indicates supply chains are being stressed, while a value below 0 means supply chains are being underutilized.

North America saw the greatest slack, dropping to -0.53 from -0.45, the highest level of underutilization in the region since March. The pullback was driven by declining input demand as factories cut orders ahead of the new year.

Meanwhile, Asian supply chain had less spare capacity, with the index rising to -0.16 from -0.30. Although Chinese factories pulled back on input purchases amid softer global demand, ASEAN countries such as Vietnam and Indonesia were resilient.

Europe’s index dipped to -0.33 in November from -0.25 in October, signaling ongoing fragility in the continent’s industrial economy. Factories in Germany and France were reticent to expand purchasing, instead opting for cutbacks.

“Companies are watching the US Supreme Court closely, and most expect a pause or rollback in tariffs,” said John Piatek, vice president, consulting, GEP. “With supply chains this slack, it remains a buyers’ market heading into 2026, and companies have real leverage to secure favorable terms for the year ahead.”