5 Trends Shaping Raw Material Sourcing in 2024: A Strategic Guide for Global Industries

The global raw material landscape is undergoing seismic shifts, driven by geopolitical tensions, climate imperatives, and technological disruption. Companies that fail to adapt risk supply chain bottlenecks, cost overruns, and regulatory penalties. Below, we break down the five most impactful trends redefining procurement strategies in 2024—and how to navigate them.

Trend 1: Carbon Transparency as a Competitive Advantage

• Why It Matters: The EU’s Carbon Border Adjustment Mechanism (CBAM) now imposes tariffs on imports based on their carbon footprint. By 2026, this will cover steel, aluminum, cement, and fertilizers.

• Case Study: Swedish steelmaker SSAB reduced emissions by 35% using hydrogen-based production, securing long-term contracts with automakers like Volvo.

• Actionable Insight: Partner with suppliers that provide verified Environmental Product Declarations (EPDs) and invest in blockchain-enabled traceability tools.

Trend 2: The Rise of Nearshoring and Friend-Shoring

• Data Point: 68% of U.S. manufacturers are relocating operations to Mexico, per Kearney’s 2023 Reshoring Index.

• Drivers: Tariff wars, pandemic disruptions, and AI-driven labor cost analysis tools are accelerating regionalization.

• Regional Spotlight: Morocco is emerging as a nearshoring hub for European automakers due to its skilled workforce and proximity to Spain.

Trend 3: AI-Driven Predictive Procurement

• How It Works: Tools like IBM’s Watson Supply Chain analyze historical data, weather patterns, and geopolitical events to predict shortages 6–12 months in advance.

• Example: A Fortune 500 chemical company reduced inventory costs by 22% using AI to optimize nickel and lithium stockpiles.

Trend 4: The Critical Minerals Arms Race

• Geopolitical Flashpoints: China controls 85% of rare earth processing, while the U.S. and EU scramble to secure lithium from Australia and Chile.

• Innovation Spotlight: Companies like Redwood Materials are pioneering lithium-ion battery recycling, recovering 95% of critical metals from scrap.

Trend 5: Circular Supply Chain Partnerships

• Success Story: Philips’ “Light as a Service” model leases lighting systems to corporations, then reclaims and refurbishes components—cutting raw material demand by 50%.

• Strategy Tip: Collaborate with industry consortia like the Ellen MacArthur Foundation to access circular economy frameworks.

Conclusion

2024 will reward businesses that blend agility with sustainability. At BrokerWise Partners, we integrate predictive analytics, supplier audits, and carbon-neutral logistics to future-proof your raw material strategy. Contact us to build a resilient supply chain.