Proxima has announced the launch of its Global Sourcing Risk Index, a report developed in partnership with Oxford Economics to assess and rank supply chain risk across 30 of the world’s largest and most influential economies.
The Index provides one of the most comprehensive assessments of global supply chain risk, analysing 10 key sectors across eight dimensions of risk – from geopolitical tensions and governance to climate disasters and cost volatility. Together, these economies represent over 85% of global GDP and 65% of global trade.
The findings present a stark warning for business leaders and sourcing professionals. Out of the 30 economies analysed, Mexico, Turkey and Russia are identified as the highest-risk sourcing countries, driven by factors including concentration risk, governance challenges and extreme weather vulnerability.
The United States ranks thirteenth globally – higher than countries such as Brazil, Malaysia and South Africa – due to geopolitical and climate-related risks, alongside labour costs. While Europe emerges as the safest region for sourcing, it also presents high input cost risk.
Simon Geale, Executive Vice President at Proxima, said: “Every sourcing decision is a risk decision. In today’s volatile environment, business leaders must have a comprehensive view of global sourcing risk across every geography and sector they operate in.
“This report highlights those traditional assumptions – such as the safety of nearshoring or the relative stability of developed economies – no longer hold true in isolation. By understanding the full spectrum of risk, businesses can make better-informed decisions that safeguard resilience, sustainability and long-term performance.”
Further key findings from the report include:
- Saudi Arabia is identified the highest risk country for supply chain human rights risks, with Turkey and Russia just behind.
- Singapore faces the greatest risk from a tariff’s perspective, due to its status as an economy heavily reliant on re-exporting.
- The Philippines is the riskiest location for weather and climate risk, due to climate risks such as rising sea levels and vulnerability to extreme weather events such as cyclones.
- Russia, India and the Philippines join Mexico and Turkey in rounding out the top 5 highest risk countries.
- At a sector level, energy, manufacturing, and food & beverage are disproportionately exposed to risk due to their reliance on high-risk geographies.
The findings of the Global Sourcing Risk Index pose questions for many organisations who are seeking to move their supply chains away from a reliance on China – in particular those who may view countries such as Mexico, Turkey or India as primary options when reworking offshore supply chains or implementing nearshoring strategies.
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