29 GEP shares how manufacturers are responding to the tariff war Global manufacturer demands for inputs (raw materials, components and commodities) reduced in April 2025, according to the GEP Global Supply Chain Volatility Index, signalling a likely production slowdown in the near future. In North America, factories have been responding to tariffs by buying fewer inputs and aggressively stockpiling. Meanwhile, purchasing activity by Asian manufacturers is at its weakest since December 2023 as demand slumps across the region. “The first blows of the tariff war have landed on global manufacturers,” said John Piatek, vice president of consulting at GEP. “Stockpiling is accelerating at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages have emerged.” Read how procurement and supply chain leaders can tackle ongoing tariff uncertainty on page 64 SAP and Microsoft’s joint initiative, the SAP Business Suite Acceleration Program with Microsoft Cloud, will help businesses move faster and work smarter with cloud and AI. The programme makes it easier for companies to upgrade to cloud-based SAP software by combining SAP’s business tools with Microsoft 365, Azure and Copilot. This enables smoother data flow between systems, so users can access insights from SAP’s Joule copilot directly from Microsoft tools like Teams and Outlook. “By combining forces, we provide partners with proven frameworks, shared resources and scalable tools that address complex challenges,” said Karl Fahrbach, chief partner officer at SAP. SAP and Microsoft to speed up cloud migration GEP supply chain volatility index Positive = supply chains are stretched. Negative = underutilised capability APR 24 MAY 24 JUN 24 JUL 24 AUG 24 SEP 24 OCT 24 NOV 24 DEC 24 JAN 25 FEB 25 MAR 25 APR 25 -1.5 -1.0 -0.5 0.0 +0.5 ASIA EUROPE NORTH AMERICA UK Sources: GEP, S&P Global PMI
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