CEOs are Worried About their Global Supply Chains

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The CEO’s role has always been a demanding one that requires the right mix of leadership, vision and resilience. The job has become increasingly difficult in this rapidly evolving and unpredictable business landscape, where economic downturns, supply chain disruptions, labor shortages and geopolitical instability have become the “new normal.”  

A new report from The Conference Board reveals a C-suite that has a lot on its mind right now, and that’s on alert for emerging disruptions as they surface. In C-Suite Outlook 2025: Seizing the Future, the group reveals how businesses are preparing for ongoing economic and geopolitical challenges and anticipating a potentially tough operating environment this year. 

Tariffs are Coming Into Focus

In “CEOs are bracing for Trump tariff disruption: Survey,” The Hill’s Tobias Burns dissects The Conference Board survey and also discusses the moves companies are taking to prepare for any tariff-related supply chain impacts. 

“Many economists have been cautioning that [President Trump’s] tariff proposals, which have included a 10 percent to 20 percent general tariff and a 100 percent tariff on Chinese imports in particular, could lead to a rise in prices, which were a top concern for voters in the 2024 election following the post-pandemic inflation,” Burns writes.

Imports have been surging at U.S. ports ahead of the expected tariffs, Burns reports. For example, the Port of Los Angeles received close to a million 20-ft. containers in October, a 25% jump over the prior month.  

Geopolitical and Geo-Economic Challenges

The Conference Board has been conducting its annual survey of C-suite executives and board members since 1999. This year’s findings are based on input provided by more than 1,722 C-suite executives and board members (including 508 CEOs). Respondents ranked intensified trade wars as the top geopolitical risk to their companies, with tensions between the U.S., EU and China expected to have the greatest geopolitical impact.

“Amid geopolitical and geo-economic tumult, more CEOs are strengthening their supply chains,” The Conference Board said in a press release. “Among US CEOs, 71% plan to alter their supply chains over the next three to five years—an increase from 54% in the 2024 survey.”

Here are some of the other key report findings: 

• Global trade wars and tensions are top geopolitical challenges in 2025. Amid talk of tougher trade policy, CEOs worldwide named U.S.-EU-China tensions among the high-impact issues facing their business in 2025. That ranges from 34% of U.S. CEOs to nearly 50% in Asia and Europe.
• Supply chains are pivoting. The Conference Board says CEOs across most regions are using digital technology and artificial intelligence (AI) to improve performance tracking as a primary goal. It adds that U.S. CEOs pinpointed vendor diversification as their top change. “Among the roughly 80% of CEOs looking to alter supply chains, most are doing so to lower costs and risk of supply chain disruptions,” the organization says.
• Risks vary by region. Among economy-related geopolitical risks, CEOs cited higher energy prices (35%) as their top risk. That includes 47% of CEOs in Japan and Europe, and 36% of Europe’s CEOs also fearing energy supply risks.
• Recession tops the economic worry list. Globally, 46% of CEOs identifie d a downturn/recession as a high-impact issue for 2025. That’s down modestly from 53% in last year’s survey. Recession is the top concern for all regions excluding Japan: The top concern for CEOs in that country is labor shortages (66%).
• Environmental, social and governance (ESG) remains top of mind. Among CEOs globally, 34% cite climate events as the top ESG factor impacting business. That’s second only to sustainability, cited by 39%. When it comes to environmental priorities, global CEOs are focused on renewable energy; U.S. CEOs are most focused on climate resilience/adaptation; Europe’s and Japan’s CEOs are most focused on carbon neutrality; and CEOs in other areas of Asia are most focused on renewable energy.