The measured level of global value chains has entered an era of structural volatility, according to a World Economic Forum report, released in Davos-Klosters, Switzerland, this week.
This new time of unpredictable disruption is driving companies and governments to reevaluate how and where they invest and produce. The report suggests that almost three-quarters of business leaders now prioritize the importance of resilience investments (assets that fall into categories often defined as infrastructure, nature and digital intelligence), with 74% viewing resilience as a driver of growth.
What are Global Value Chains?
Easy to mention as a general economic barometer but rarely defined, we can explain global value chains as an entire production model for a product or service, especially where total production involves more than one country’s input. Every stage from research and development to design, manufacturing and commercial go-to-market activities is included. The model for a global value chain is further defined by location and labor cost, availability of expertise and skills, proximity to raw materials and onward logistics and distribution channels.
The World Economic Forum says that the volatility now manifesting itself in global value chains is set against a backdrop of geopolitical fragmentation, accelerating technological change and mounting resource constraints.
The report – Global Value Chains Outlook 2026: Orchestrating Corporate and National Agility – developed in collaboration with global consulting firm Kearney, examines how companies and governments can remain competitive as disruption becomes a permanent feature rather than a cyclical shock. Its authors say that the report provides a practical, action-oriented playbook for corporate and public-sector leaders to navigate this shift.
A Data-Driven Tool for Footprint Decisions
For industry, it outlines how to redesign supply chains around orchestration, distributed scale and optionality to build structural agility and unlock growth under volatility. For governments, it offers a policy blueprint to strengthen industrial readiness, enable adaptive ecosystems and attract investment in future-ready manufacturing. It also introduces the Manufacturing and Supply Chain Readiness Navigator, a data-driven tool to support footprint decisions and policy execution.
Drawing on leading global indices, the Navigator supports strategic decision-making on industrial policy and manufacturing footprint design. Governments can use it to diagnose competitiveness gaps and prioritize reforms, while companies can assess infrastructure readiness and ecosystem maturity when making location and investment decisions.
“Volatility is no longer a temporary disruption; it is a structural condition leaders must plan for,” said Kiva Allgood, managing director, World Economic Forum. “Competitive advantage now comes from foresight, optionality and ecosystem coordination. Companies and countries that build these capabilities together will be best positioned to attract investment, secure supply and sustain growth in an increasingly fragmented global economy.”
“Supply chain disruption in 2026 will be constant and structural. Geopolitical fragmentation, shifting trade rules and labour shortages are all redefining how value is created and moved,” said Per Kristian Hong, partner, Kearney. “For supply leaders, the priority is no longer forecasting disruption, but redesigning operating models to function under permanent uncertainty. That means moving away from efficiency-driven supply chains and towards adaptive networks that can be reconfigured with optionality as conditions change.”
Ireland, China, Qatar
The report also highlights how targeted national approaches are already shaping manufacturing competitiveness.
In Ireland, enterprise-led upskilling through Skillnet Ireland links government, business and educators to deliver subsidized training aligned with industry needs. In China, large-scale investment in digital infrastructure under the New Infrastructure initiative has enabled real-time industrial connectivity through widespread 5G deployment. In Qatar, a national dashboard tracking essential food items in real time strengthens supply security by enabling early intervention, buffer stocks and rapid, data-driven responses to disruption.
The Global Value Chains Outlook 2026 draws insights from more than 100 consultations with leaders from industry, government and academia, alongside survey data from over 300 senior executives.
