More than nine in 10 businesses report that geopolitical developments are affecting their raw material supply chains, according to research from Inverto.
The procurement and supply chain consultancy’s ‘2026 Raw Materials Study’, based on a survey of 354 managing directors, board members and procurement decisionmakers across Europe and Asia-Pacific, found that 91% reported an impact from geopolitical developments on raw material logistics and availability.
Meanwhile, 86% of respondents said they expect raw material prices to increase over the next 12 months, the highest proportion recorded by the study since 2020. However, 66% continue to prioritise price over supply resilience when sourcing raw materials.
Justus Brinkmann, principal at Inverto, said: “The data tells a consistent story: businesses know exactly where the risks sit, but the way they buy hasn’t caught up with that knowledge.
“As long as cost remains the primary reference for procurement decisions, resilience will keep losing out.”
Despite this, the research suggests companies are changing their sourcing strategies in response to supply chain risks. Some 48% are strengthening sourcing partnerships, 46% are increasing dual or multiple sourcing and 41% are nearshoring.
Raw material supply concerns vary by commodity, with 27% of respondents expecting supply problems for crude oil, 21% for power and 20% for iron and steel.
The research also identified relatively limited adoption of artificial intelligence in raw material management, with just 7% of respondents reporting that AI has been fully integrated into their processes.
However, there were significant regional differences. Half of respondents from the Asia-Pacific region were described as at ‘an advanced stage of AI maturity’, compared with 10-30% across European countries.
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