- EU-based importers were able to adapt swiftly to past supply-chain shocks, according to study.
- Intra-EU trade serves as a source of resilience, cushioning firms from global disruptions.
- European importers diversified suppliers following worldwide trade disruptions, says report by EIB and European Commission.
- European businesses also embraced technologies to strengthen logistics.
Firms in the European Union have responded to global trade shocks with remarkable agility, according to a new report. EU-based traders took actions to counter supply-chain disruptions caused by a series of geopolitical upheavals, the study concludes.
The report published today and entitled “Shock Waves from Turbulent Times: How EU businesses recalibrate supply chains”, is a result of the collaboration between the European Investment Bank (EIB) and the European Commission, covering a survey of some 850 EU importers in goods and services., which took place between May 2024 and October 2024.
About 25% of EU firms have been investing in digital tracking to strengthen their supply chains. In their pursuit of resilience, efficiency and security, they have also been diversifying their supply chains and adding new sourcing countries.
“Uncertainties in global trade present us with an opportunity to reinforce the EU's role as a stable partner,” said EIB Chief Economist Debora Revoltella. “By enhancing our economic security strategy, we can not only foster resilience but also drive sustainable growth for our businesses.”
Diversifying supply chains has bolstered the resilience and competitiveness of EU traders, which are also committed to investing in digitalisation, according to the report.
Still, it found that European importers of essential inputs from China were more prone to report trade disruptions and flagged greater difficulties finding alternative suppliers in the EU than outside it. In addition, firms using unique technologies reported being more likely to be vulnerable to geopolitical risks.
“Supply chain distress has visibly eased since last year. However, firms show strong risk awareness.” said Román Arjona, chief economist in the European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. “Our joint report with the European Investment Bank notes that making supply chains more resilient can be challenging at times, especially for essential imports for which alternative suppliers are hard to find.”
Access to finance and policy support has helped firms in the past dealing with disruptions and strengthening the resilience of the supply chains. In addition, the report underpins that in an uncertain global landscape, the European single market remains a crucial asset for EU businesses, with untapped potential.
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Background information
About the EIB
The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It provides finance and expertise for projects that contribute to EU objectives. The EIB Group works closely with public and private sector partners to support sustainable investment, job creation, economic growth and innovation across Europe.
About the DG-GROW
The Directorate General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW) is the Commission department that works to support an open, seamless and resilient Single Market, with open borders and free flow of goods and services. The department supports the competitiveness, growth and resilience of the EU economy, while focusing on strengthening the leadership of European industries across different industrial ecosystems.