Global Manufacturers Increased Purchasing in September
Rising industrial demand has sparked a new round of supply chain constraints across global markets.
Updated on Oct. 12, 2026 in Manufacturing
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Global manufacturers accelerated their purchasing of raw materials and components throughout September 2026. This surge in activity marks the first increase in global supply chain shortages since May 2026.
Why it matters
Manufacturers are ramping up inventory as underlying demand firms globally. However, this growth has intensified transportation cost inflation and depleted safety buffer inventories, creating new logistical challenges.
The GEP Global Supply Chain Volatility Index, which tracks data from 27,000 businesses, recorded a September index value of 1.49 in Asia, 1.13 in North America, 0.66 in Europe, and 0.59 in the UK. These figures reflect increased purchasing activity and supply strain.
The players
GEP
GEP is a supply chain and procurement software provider that produces the Global Supply Chain Volatility Index using monthly surveys.
The details
Rising global oil prices have driven up transportation costs while shortages of oil-based products have intensified. While businesses reported fewer backlogged orders caused by staff shortages, the reduction in safety buffer inventories suggests that companies are struggling to keep pace with demand.
Timeline
May 2026 marked the last period where global index-based shortages increased.
September 2026 saw manufacturers significantly increase their purchasing of raw materials.
The fourth quarter of 2026 is expected to remain a period of firm manufacturing activity.
The next GEP Global Supply Chain Volatility Index report is scheduled for November 11, 2026.
Market Landscape
This purchasing surge marks a departure from the stabilized supply conditions observed earlier in the year, signaling a pivot toward more volatile market conditions. Companies are now repositioning their supply chains to manage rising transportation costs and tighter inventory buffers against competitors.
Consumers may see price adjustments on finished goods as manufacturers pass on increased transportation and material costs. Businesses should anticipate potential delays or higher premiums for oil-based components as supply buffers remain low.
The takeaway
Manufacturers should prepare for continued supply chain tension as demand outpaces inventory replenishment efforts. Diversifying shipping routes or locking in oil-based material contracts early may help mitigate rising costs in the coming quarter.
What happens next
The next update to the GEP Global Supply Chain Volatility Index is scheduled for release on November 11, 2026.
Further reading
For more on the current industrial climate, visit our section on Manufacturing.
More information
View the latest metrics in the GEP Global Supply Chain Volatility Index.
Live Poll
Do you believe recent supply chain trends suggest higher prices for consumer goods soon?
