These were the findings of a survey conducted from Sept. 18 to Oct. 25 by four major German trade associations, including BEVH, the association of e-commerce and mail order trade, among the registered participants of the German Supply Chain Day.
According to the survey, 82 percent of companies consider geopolitical conflicts the greatest threat to their supply chains – overriding concerns over cybercrime (8 percent) and natural disasters (6 percent).
Business leaders are particularly wary of post-election trade policies in the US and fear a resurgence of ‘America First’ protectionism.
Nearly a third (31 percent) expect unilateral import tariffs, while 59 percent foresee targeted trade barriers under a continuation of protectionist US trade policies. Few respondents hold out hope for a shift toward cooperative, multilateral trade relations, with only 6 percent expecting an easing of trade tensions.
Meanwhile, Germany’s reliance on China as a trade partner remains strong. A staggering 75 percent of companies describe China as “important” (31 percent) or “very important” (44 percent) to their business, despite growing calls within the European Union for a more assertive approach toward Beijing, with two-thirds of respondents (64 percent) advocating for the EU to counter subsidized Chinese exports with firmer measures.
Respectively, 30 and 36 percent of companies see Asia (without China) as “important” or “very important”, while the US comes in third place with 18 percent (“very important”) and 35 percent (“important”).
Sixty-two percent of respondents said that Germany’s Supply Chain Due Diligence Act (LkSG), introduced in 2023, has imposed significant compliance burdens on businesses, negatively impacting their operations. The surveyed companies cited excessive bureaucracy and heightened competition risks as the main hurdles caused by the new law.
On a Europe-wide level, the impending Corporate Sustainability Due Diligence Directive has compounded anxieties and is expected by a majority of surveyed companies to drive up costs and exacerbate red tape.
In response to these challenges, German businesses are turning to digital tools to enhance supply chain transparency and resilience.
Eighteen percent of companies have already implemented digital solutions for monitoring supply chains, while another 40 percent are in the process of doing so or planning upgrades.
However, a sizeable proportion (21 percent) of businesses remain reliant on non-digital systems – a vulnerability in an increasingly data-driven global economy.
In a joint statement, the trade associations are urging the German government and the European Union to develop pragmatic policies that balance compliance with competitiveness, demanding clarity, relief, and a focus on fostering resilient, diversified supply chains.
Photo: © Chuttersnap on Unsplash
