
Jeffrey AdobeStock_959667323
QIMA released its Q1 2025 Barometer, highlighting the key forces reshaping global procurement strategies.
As trade wars, nearshoring, and ethical compliance take center stage, the report draws on extensive factory audit and product inspection data to provide a comprehensive view of the challenges and opportunities brands face in navigating an increasingly complex supply chain landscape.
Key takeaways:
- Despite efforts to diversify, China remains integral to global supply chains, with a +29% year-over-year (YoY) growth in demand for inspections and audits. Anticipating potential new tariffs from the United States, some Western brands have been mentioning stockpiling Chinese-made goods, highlighting the country’s continued importance.
- Countries like Mexico, Guatemala, and the Dominican Republic are gaining traction as nearshoring destinations, with a +20% YoY increase in audit and inspection demand. However, risks tied to potential tariff revisions and capacity challenges constrain larger transitions, pushing brands toward diversified, multi-shoring strategies.
- With the rollout of new regulations, such as the EU Corporate Sustainability Due Diligence Directive, ethical compliance reached record highs in 2024. Over 58% of factories globally achieved "Green" ratings. Yet, regions like Bangladesh remain hotspots for violations, with one-third of factories inspected recording critical breaches in wages and working hours.
- As brands shift sourcing to Southeast Asia and other regions, maintaining product quality is increasingly complex. Countries like Vietnam and the Philippines saw double-digit YoY inspection growth, driven by the shift away from China and rising geopolitical tensions.