Rising Costs and Shifting Supply Chains: Standard Chartered Survey Reveals Corporate Strategies Amid Global Uncertainty
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Nearly two-thirds of global companies expect operating costs to rise by 5 to 14 percent over the next three to five years, according to a recent survey by Standard Chartered. Executives cite supply chain restructuring, geopolitical tensions, and shifting tariff regimes as the main drivers of higher expenses.
Survey Scope and Respondent Profile
The survey, conducted between July and early August, polled 1,200 senior business leaders across 17 markets, including Hong Kong, mainland China, ASEAN countries, the Middle East, the United States, and the United Kingdom. Respondents represented diverse industries ranging from retail and consumer goods to energy, technology, and media.
China Remains a Central Node
Despite rising costs and calls for diversification, China continues to play a central role in corporate supply chain strategies. The report noted that mainland China remains among the top destinations for companies reorganizing their global networks. African markets, particularly Kenya and Nigeria, show deepening links with China: more than half of businesses surveyed in these countries plan to expand trade with Chinese partners.
India’s corporate sector also reflects this trend, with around half of Indian respondents indicating they expect to increase trade reliance on China. By contrast, among executives in the US and UK, about 40 percent expect to maintain current trade levels with China, while roughly 10 percent plan to scale back activity — evidence of a gradual diversification drive among some Western firms.
Financing Tools Gain Momentum
Alongside trade realignments, companies are turning to financial technology to bolster liquidity. Nearly 40 percent of surveyed firms have already adopted supply chain finance platforms, while more than half plan to accelerate usage in the near term. This reflects a broader push to strengthen cash flow management as cost pressures intensify.
A Global Balancing Act
The findings underscore the complex balancing act facing multinational companies: controlling costs in a volatile environment while maintaining access to critical markets and suppliers. For global investors and supply chain professionals, the survey highlights both the persistence of China’s role in global trade and the growing importance of digital finance tools in mitigating structural risks.
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