According to findings from HSBC’s Trade Pulse Survey, 63% of firms within the transport and industrial sector have already experienced cost increases due to recent tariffs and trade disruption.
Meanwhile, 71% expect to see cost increases in the next six months as a result, and the same proportion expect to still be feeling the impact in terms of cost in two years’ time.
Across all sectors, 66% of survey respondents reported having experienced cost increases associated with trade uncertainty to date.
18% of respondents in the transport and industrial sector strongly claimed that they feel that they can accurately forecast their demand and costs over the next 12 months, compared to 21% across all sectors.
Looking at preparedness for disruption to global trade, just over half (51%) of transport and industrial professionals surveyed said they feel informed and are taking steps to prepare, while 34% believe themselves to be informed and prepared.
Nearshoring as a strategy to address global trade uncertainty is something than the transport and industrial sector is considering more than other sectors, this data shows; 55% of respondents transport and industrial surveyed said they are planning to perform nearshoring activities, but this figure drops to less than half (49%) across all sectors.
However, just 29% of those in the transport and industrial sector said they’ve already conducted nearshoring activities, while across all sectors this figure is higher (34%).
Global industrial superpowers China and the USA have been at the heart of uncertainty and trade disruption in the past year, with a trade war fuelled by tit-for-tat tariffs only recently deescalating.
Looking forward, just 29% of transport and industrial professionals reported that they are looking to increase their reliance on the USA (39% across all sectors). However, 48% said they’re considering increasing their reliance on China (44% across all sectors).
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HSBC’s Trade Pulse Survey collected data from 5,750 corporate firms in 13 different markers in Europe, Asia, the Middle East and the Americas. All survey respondents were C-suite or senior management leaders with strategic and financial responsibilities.
