CSCMP President and CEO Mark Baxa (holding microphone) introduces a panel discussion on the state of the semiconductor industry at the inaugural meeting of the Mexico City CSCMP Roundtable.
CSCMP
Inaugural event featured a preview of the “2025 State of the Global Semiconductor Supply Chain Report” by Arizona State University’s Dale Rogers.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
With the inaugural meeting of the Mexico City Roundtable on January 23, the Council of Supply Chain Management Professionals (CSCMP) marked a significant step forward in its efforts to expand its presence in Latin America.
The meeting, held at the Mexico City campus of the research university Tecnológico de Monterrey, kicked off with presentations from CSCMP President and CEO Mark Baxa, Country Manager Javier Zarazúa, and Jonathan Albañil of the logistics service provider Dicka Logistics.
“This event was a remarkable milestone for CSCMP in Mexico, and I look forward to the continued growth of this exceptional community," says Baxa.
The opening presentations were followed by a preview of the “2025 State of the Global Semiconductor Supply Chain Report” by Dale Rogers, ON Semiconductor Professor of Business at Arizona State University of Arizona State University, and a Q&A session with five industry experts.
“The insights shared by Dr. Dale Rogers and the distinguished semiconductor panel underscored the critical role this industry plays on the global stage,” says Baxa.
The second edition of semiconductor report will be released in February. The first edition of the report can be found on CSCMP’s website. The report is free to CSCMP members and $299 for nonmembers.
"This report not only sheds light on the challenges and opportunities shaping the semiconductor landscape but also serves as a call to action for greater collaboration, resilience, and strategic foresight in navigating this ever-evolving sector,” says Baxa.
Mexico City is one of seven new roundtables CSCMP announced in December. The others are Monterrey, Guadalajara, Toronto, Panama City, Portugal, and Sao Paulo. More information about CSCMP roundtables can be found here.
Overall disruptions to global supply chains in 2024 increased 38% from the previous year, thanks largely to the top five drivers of supply chain disruptions for the year: factory fires, labor disruption, business sale, leadership transition, and mergers & acquisitions, according to a study from Resilinc.
Factory fires maintained their position as the number one disruption for the sixth consecutive year, with 2,299 disruption alerts issued. Fortunately, this number is down 20% from the previous year and has declined 36% from the record high in 2022, according to California-based Resilinc, a provider of supply chain resiliency solutions.
Labor disruptions made it into the top five list for the second year in a row, jumping up to the second spot with a 47% year-over-year increase following a number of company and site-level strikes, national strikes, labor protests, and layoffs. From the ILA U.S. port strike, impacting over 47,000 workers, and the Canadian rail strike to major layoffs at tech giants Intel, Dell, and Amazon, labor disruptions continued its streak as a key risk area for 2024.
And financial risk areas, including business sales, leadership transitions, and mergers and acquisitions, rounded out the top five disruptions for 2024. While business sales climbed a steady 17% YoY, leadership transitions surged 95% last year. Several notable transitions included leadership changes at Boeing, Nestlé, Pfizer Limited, and Intel. While mergers and acquisitions saw a slight decline of 5%, they remained a top disruption for 2024.
Other noteworthy trends highlighted in the data include a 146% rise in labor violations such as forced labor, poor working conditions, and health and safety violations, among others. Geopolitical risk alerts climbed 123% after a brief dip in 2023, and protests/riots saw an astounding 285% YoY increase, marking the largest growth increase of all risk events tracked by Resilinc. Regulatory change alerts, which include tariffs, changes in laws, environmental regulations, and bans, continued their upward trend with a 128% YoY increase.
The five most disrupted industries included: life sciences, healthcare, general manufacturing, high tech, and automotive, marking the fourth year in a row that those particular industries have been the most impacted.
Resilinc gathers its data through its 24/7 global event monitoring Artificial Intelligence, EventWatch AI, which collects information and monitors news on 400 different types of disruptions across 104 million sources including traditional news sources, social media platforms, wire services, videos, and government reports. Annually, the AI contextualizes and analyzes nearly 5 billion data feeds across 100 languages in 200 countries.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
“The past year has been unprecedented, with extreme weather events, heightened geopolitical tension and cybercrime destabilizing supply chains throughout the world. Navigating this year’s looming risks to build a secure supply network has never been more critical,” Corey Rhodes, CEO of Everstream Analytics, said in the firm’s “2025 Annual Risk Report.”
“While some risks are unavoidable, early notice and swift action through a combination of planning, deep monitoring, and mitigation can save inventory and lives in 2025,” Rhodes said.
In its report, Everstream ranked the five categories by a “risk score metric” to help global supply chain leaders prioritize planning and mitigation efforts for coping with them. They include:
Drowning in Climate Change – 90% Risk Score. Driven by shifting climate patterns and record-high temperatures, extreme weather events are a dominant risk to the supply chain due to concerns such as flooding and elevated ocean temperatures.
Geopolitical Instability with Increased Tariff Risk – 80% Risk Score. These threats could disrupt trade networks and impact economies worldwide, including logistics, transportation, and manufacturing industries. The following major geopolitical events are likely to impact global trade: Red Sea disruptions, Russia-Ukraine conflict, Taiwan trade risks, Middle East tensions, South China Sea disputes, and proposed tariff increases.
More Backdoors for Cybercrime – 75% Risk Score. Supply chain leaders face escalating cybersecurity risks in 2025, driven by the growing reliance on AI and cloud computing within supply chains, the proliferation of IoT-connected devices, vulnerabilities in sub-tier supply chains, and a disproportionate impact on third-party logistics providers (3PLs) and the electronics industry.
Rare Metals and Minerals on Lockdown – 65% Risk Score. Between rising regulations, new tariffs, and long-term or exclusive contracts, rare minerals and metals will be harder than ever, and more expensive, to obtain.
Crackdown on Forced Labor – 60% Risk Score. A growing crackdown on forced labor across industries will increase pressure on companies who are facing scrutiny to manage and eliminate suppliers violating human rights. Anticipated risks in 2025 include a push for alternative suppliers, a cascade of legislation to address lax forced labor issues, challenges for agri-food products such as palm oil and vanilla.
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).