Business wire
Data provides insight into this year’s top global supply chain risks including extreme weather, geopolitical instability, cybercrime, lack of commodities and a forced labor crackdown
Everstream Analytics Unveils 2025 Annual Risk Report
Abby O’Malley
Marketbridge PR for Everstream Analytics
Everstream@marketbridge.com
Everstream Analytics, the global leader in supply chain insights and risk analytics, today unveiled its 2025 Annual Risk Report, which identifies the five most likely supply chain events that will impact supply chain operations this year.
Based on Everstream’s proprietary comprehensive database of supply chain disruptions, the report analyzes past events to highlight growing trends, build projections and uncover this year’s biggest supply chain threats and most vulnerable industries. Within the report, each risk is assigned a risk score metric to help global supply chain leaders prioritize planning and mitigation efforts this year. The following key risks are scored and evaluated: climate change/weather, geopolitical instability, cybercrime, rare metals/minerals and the crackdown on forced labor.
“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,” said Corey Rhodes, CEO Everstream Analytics. “As companies look to prepare their operations for the new year, Everstream’s Annual Risk Report gives precise insight into the top risks threatening logistics, suppliers and their networks. 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.”
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. The Annual Risk Report, highlights the key weather concerns for supply chain leaders, including:
- Flooding: Volatile flooding has the potential for deep disruption, and the capability to destroy nations with the most sophisticated weather warning systems and infrastructure. Companies will be upended by even more frequent small-scale events, in addition to those of a larger scale.
- State of Ocean Temperatures: All indications point to the state of ocean temperatures being elevated in 2025 and beyond, with the potential for record-breaking highs. This will result in more frequent and disruptive flood events.
Geopolitical Instability with Increased Tariff Risk – 80% Risk Score
In 2025, global supply chains face geopolitical threats that 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: Ongoing attacks on cargo and container ships continue to lead to longer transit times and equipment imbalance.
- Russia-Ukraine Conflict: Continued conflict in Ukraine could destabilize manufacturing and trade activities, putting European economies at further risk.
- Taiwan Trade Risks: Increased Chinese military drills near Taiwan could hinder trade through major sea routes, affecting global container shipping flows.
- Middle East Tensions: Escalating conflicts in Lebanon and Gaza are already disrupting logistics operations, risking infrastructure damage and worker shortages.
- South China Sea Disputes: Disputes between China and neighboring countries could result in vessel skirmishes, jeopardizing maritime trade routes.
- Proposed Tariff Increases: The automotive, semiconductor, and manufacturing industries are particularly at risk due to proposed tariffs by the new U.S. government as well as potential retaliatory measures by other countries.
More Backdoors for Cybercrime – 75% Risk Score
Supply chain leaders face escalating cybersecurity risks in 2025, driven by the growing reliance on AI, IoT devices and interconnected systems. The report outlines the most critical supply chain cybersecurity risks, particularly for the manufacturing and electronics industries. These risks include:
- Increased Back Door Access for Cybercrime: Growing reliance on AI and cloud computing within supply chains is creating new “back door” opportunities for bad actors. They are capitalizing on the proliferation of IoT-connected devices, coupled with the widespread use of outdated security protocols and improperly configured firewalls, providing ample entry points for cyberattacks.
- Vulnerabilities in Sub-tier Supply Chains: In 2025, cyberattacks will primarily arrive via sub-tier supply chains where criminals can more easily exploit common programming errors and vulnerabilities, allowing them to leapfrog into organizations via phishing, software connection links or other methods.
- Impact on Logistics and Transportation: Third-party logistics providers (3PLs) will be disproportionately impacted by ongoing cyber threats compared to transit hubs like cargo ports and airports.
- Electronics Industry at Critical Risk Levels: The electronics industry experienced a surge of vulnerabilities within its internal systems in 2024 and these are expected to continue. In the coming year, electronics companies will be particularly vulnerable to data breaches, ransomware attacks and phishing.
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. Key findings include:
- New Tariffs and Sanctions on Critical Metals: Within a politically charged atmosphere between the West and the major commodity producers – China and Russia – companies will face new tariffs and sanctions on critical metals. Governments are placing renewed emphasis on the negative environmental and social impacts of mining, which will present challenges for metal producers over the coming year.
- Concerns Over Lack of Alternative Suppliers: China could impose broader export restrictions, highlighting the need for supply chain managers to diversify sourcing strategies. This lack of supplier diversity could complicate procurement, lead to supply shortages and could make the price of affected commodities particularly vulnerable to trade tensions and eventual tariffs or sanctions.
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:
- Push for Alternative Suppliers: Rising levels of concern surrounding labor conditions in China and the country’s ongoing geopolitical rivalry with the U.S. have pushed many companies to find alternative suppliers in India, Mexico and other Southeast Asian countries. However, many of these emerging economies do not have adequate laws or enforcement mechanisms for workers.
- Increase in Legislation: A cascade of legislation has been created that aims to address the lax forced labor issues in America, Europe, Mexico and Canada. Other countries are expected to follow suit this year, as they consider legislation or strengthening existing regulations on forced labor.
- Challenges Remain for Agri-Food Sector: The global concentration of commodities such as palm oil (83%) and vanilla (92%) originate from countries frequently cited for modern slavery. Companies may face challenges abiding by forced labor regulations, given the prevalence in the agri-food industry,
For the full breakdown of insights, analysis, and prescriptive recommendations from Everstream Analytics, download a copy of the 2025 Annual Risk Report, here.
About Everstream Analytics:
Everstream Analytics sets the global supply chain standard. Through the application of artificial intelligence and predictive analytics to its vast proprietary dataset, Everstream delivers the predictive insights and risk analytics businesses need for a smarter, more autonomous and sustainable supply chain. Everstream’s proven solution integrates with procurement, logistics and business continuity platforms generating the complete information, sharper analysis, and accurate predictions required to turn the supply chain into a business asset. To learn more, visit https://www.everstream.ai/.
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