Manufacturers Accelerate Stockpiling as Costs Rise
The GEP Global Supply Chain Volatility Index shows precautionary buying and rising transport costs in October 2026.
Updated on Nov. 11, 2026 in Transportation
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Manufacturers accelerated precautionary stockpiling in October 2026, while global transportation costs rose for a second consecutive month. The GEP Global Supply Chain Volatility Index, based on a monthly survey of 27,000 businesses, showed overall supply chain pressures easing as material and labor shortages declined.
Why it matters
Manufacturers are buying extra materials to guard against future price increases and shortages, driven by growing concerns about inflation and supply disruptions. Once those inventories are built, purchasing could slow and weigh on manufacturing and the wider economy in 2027.
The Asia index rose to 1.67 in October 2026 from 1.49, while the North America index fell to 1.03 from 1.13 and the Europe index rose to 0.78 from 0.66. The U.K. index fell to 0.39 from 0.59, and the index is based on a monthly survey of 27,000 businesses.
The players
GEP
GEP is a global business services firm that publishes the Global Supply Chain Volatility Index, which tracks supplier and purchasing conditions through a monthly survey of businesses.
The details
The safety stockpiling indicator in North America more than doubled from September to October 2026, and inventory building in Europe rebounded sharply. Procurement managers made concerted efforts to protect against further material price inflation and shortages, while global purchasing demand continued to grow.
Timeline
October 2026: Manufacturers accelerated precautionary stockpiling and global transportation costs rose for a second consecutive month.
Dec. 10, 2026: Next release of the GEP Global Supply Chain Volatility Index.
Transportation Outlook
The October 2026 readings from the GEP Global Supply Chain Volatility Index show regional divergence, with Asia's index rising sharply while North America's and the U.K.'s fell. This extends the index's monthly series by highlighting how precautionary buying is reshaping transportation demand across regions.
Businesses that buy materials in bulk may face higher carrying costs if stockpiling slows and inventories are drawn down. Shippers and buyers should expect transportation costs to remain a factor in pricing decisions while global oil prices continue to rise.
The takeaway
Watch inventory levels and transportation costs together, since precautionary buying can support manufacturing now but may cool purchasing later. Companies that plan for both phases can better manage cash flow and supplier commitments.
What happens next
The next release of the GEP Global Supply Chain Volatility Index is scheduled for Dec. 10, 2026, and will show whether stockpiling and transportation cost increases continued.
Further reading
For more on how freight and logistics costs are moving, explore the Transportation section.
More information
Review the latest figures on the GEP Global Supply Chain Volatility Index data page.
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