Could another supply chain crunch be on the horizon?

Issue No. 266
12th November 2025

Could another supply chain crunch be on the horizon?

While 2025 started slowly for many manufacturers, with US trade policy playing no small part in that, it seems that projects were delayed rather than cancelled. The year has picked up, and researchers at Interact Analysis anticipate that these delays could coalesce as a 'pop' in orders, and a potentially strong rebound in H1 2026. The fly in the ointment is potential supply chain disruption for automation OEMs as China restricts exports of rare earth materials. Interact Analysis research manager Blake Griffin doubts the impact will be as intense as the supply chain disruption of 2021, but adds: "Heading into 2026 it will be important to evaluate how exposed your supply chain is. If companies are unable to secure key components necessary to produce, those with adequate inventory are likely to gain market share.

With best regards

Mark Simms, Editor
editor@machinebuilding.net

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