UK CEOs optimistic, prioritise localisation amidst geopolitical uncertainty

Thanks to Silvia and team. Some truly valuable insights coming from our latest survey. It certainly reflects what we’re seeing in the market. Many business leaders are now taking a more holistic view when considering how to evolve their strategy— 1. Particularly considering how they can localise their strategy to mitigate geopolitical & trade risks as well as positioning themselves closer to customers & innovation hubs. The key question is how to make this transition successful. It means rethinking and reshaping several core areas: 💡 Operating model – Leaders are reviewing their structures to ensure they’re lean and fit for purpose. It’s an opportune time to assess legal entity structures and identify underperforming or non-core assets that may no longer support the future vision. 💡 Supply chains – A clear understanding of the end-to-end supply chain is essential. Adjusting sourcing strategies and supplier mix helps manage risk and build resilience, especially in sectors where disruptions have had significant knock-on effects. 💡 Working capital – Reviewing capital positions is critical to ensure the business has the flexibility to support transformation and absorb shocks. 💡 Cash flow – Leaders are focusing on cash flow forecasting and scenario planning to maintain liquidity and fund strategic initiatives. This includes stress-testing assumptions and identifying levers to improve cash conversion. 💡 Technology and R&D – Investment in technology and innovation is accelerating. Businesses are prioritising digital capabilities, automation, and data-driven decision-making, while also exploring how R&D can support product evolution and competitive differentiation. 2. At the same time, leaders are balancing increased optimism with the reality of ongoing geopolitical and economic uncertainty that may persist for several years and rising technology threats. They’re reimagining growth, resilience, and transformation in real time - focused firmly on future opportunities, including entering new markets and building scale. They understand the need to take proactive and decisive action to transform their strategy. 3. Funding this transformation is a key priority. Many are increasing investment and exploring options such as M&A, alliances, and joint ventures to acquire new capabilities and technology. The breadth of options available is notable, with each acting as a lever for long-term resilience and competitive advantage. 📈 All this underscores the importance of agility and decisive action for businesses aiming to grow in today’s complex environment.📈 #ReshapingResults #ReshapeReimagineGrow #CEOs #CEOOutlook #Geopolitics #SupplyChain #BusinessResilience #EYParthenon

Localisation and regionalisation initiatives - such as producing goods locally or regionally - have emerged as critical strategies for UK CEOs managing evolving market dynamics CEO confidence is growing with 87% of respondents feeling optimistic about their company performance in the next 12 month Three-quarters (75%) of CEOs surveyed identified the UK as their top destination for capital investment   Read the press release here 👉 UK CEOs prioritise localisation strategies | EY - UK   Read the full report to know more 👉 CEO Survey September 2025: Confidence, disruption and growth | EY - UK

UK CEOs prioritise localisation strategies UK companies are accelerating localisation and regionalisation strategies to manage risk and build resilience as they navigate ongoing geopolitical uncertainty, according to the latest EY-Parthenon CEO Outlook Survey. Conducted in August 2025, the survey of 100 UK CEOs - 70% of which are from publicly listed companies - found that CEO confidence has grown despite a turbulent macro and geopolitical environment. Eighty-seven per cent of UK CEOs said they were very or somewhat optimistic about company performance over the next 12 months, an increase from 83% in May this year. 

UK CEOs are doubling down on localisation and regionalisation strategies: According to a new survey by EY, they “are taking decisive steps to localise and regionalise their businesses. These strategies are no longer just tactical responses to short-term disruption - they are fundamental to long-term resilience and growth.” National chains, with purely national identities, defined by national straight-jacketed approaches, and executive leadership that is remote from and unknown to communities, are going to find it more and more challenging to address the specific challenges and opportunities of the next decade. The argument of efficiencies for efficiency’s sake is a short term approach that won’t address the fundamental issues that lie beneath the driving up of costs and the growing strain that so many institutions are experiencing. We’ve been talking about this for some time now. The definition of ‘successful’ growth in the education sector over the last decade is increasingly unaligned with the kind of leadership and organisational models that best position us all for the future. Localism, locality identity, and unlocking the vast social and professional capital of communities represents the move from cure leadership to prevention leadership, the shift from ‘citizen as consumer’ back to citizen as participant, the underpinning of a much needed sense of cohesion and belonging, and the building of genuinely sustainable models of improvement through ongoing and proximate relationships. Uncomfortable as it may sound to some, this is becoming more and more difficult to achieve through organisational leadership (boards and execs) that simply leads at distance - from hundreds of miles away. When we talk about community-enabling leadership now being the leadership priority of a generation, we’re not just talking about education. The shift is happening in the way CEOs are leading across sectors. UK companies are accelerating localisation and regionalisation strategies to manage risk and build resilience as they navigate ongoing uncertainty: https://lnkd.in/g8hPnJN5

#Issue 68 Newsletter September 2025 https://lnkd.in/eqhMNwHi Companies’ International Strategy in Times of Disruptions As international tensions, geopolitical crises and uncertainty about trade tariffs dominate the business landscape, boards of directors and senior management teams need to reflect on how to adapt their companies’ international strategy. In a recent IESE Center for Corporate Governance Newsletter article, I argue that companies’ senior leaders need to quickly assess and update some critical dimensions of their international strategy: market access and potential, global supply chains, business model’s resilience and relations with key local stakeholders. They also need to think about three strategic decisions that will shape their international strategies over the next years: how to be unique for local customers, which means a value proposition that may differ from country to country; reduce the geographical scope in terms of number of countries and focus on those truly relevant; organize operations with local market focus -away from the global-; and develop local managers with an entrepreneurial drive. We enter a new era of semi-globalization with more disruptions than in the past. Companies need to reflect on how to change their international strategy to continue being relevant, and embrace these new features.

Three years ago I read the book "The End of the World is just the Beginning: Mapping the Collapse of Globalisation" by author and geopolitical expert Peter Zeihan. Since then we've seen a post COVID 19 world that seems less connected, with more inwardly focused world leaders, increased trade wars / tariffs, pronounced conflicts and greater economic fracturing. So it was with some interest that I read EY Parthenon's recent global CEO survey where one of the key findings is a CEO focus on localisation and regionalisation as a critical strategy to counter geopolitical pressures. The survey findings article is a great read, some of takeaways of interest to me: - Surveyed 1,200 CEOs from large companies in 21 countries in August 2025 - CEOs believe geopolitical and economic uncertainty will last beyond 12 months - 75% of CEOs are either in the process of localising or have localised some part of their production within the country of sale - They overwhelmingly see their transition to localisation and regionalisation as a long-term strategic shift and not a short-term tactical initiative - Localising operations not only secures supply chains but can also strengthen relationships with governments, regulators, and local communities - Technology disruption and AI integration risks are rated in their top five challenges - Technology and data is the area in which CEOs are pushing furthest on localisation and regionalisation, leveraging digital platforms that enable regional scale without losing productivity, while more strongly supporting digital sovereignty. Unfortunately, the survey didn't include New Zealand CEOs, although it did include Australian CEOs. It would be interesting to get an NZ lens on this given our smaller country size and greater reliance of trading partners. Read what CEOs are currently thinking 👇 https://ow.ly/mhh350Xakpa #CEOs #ShapeTheFutureWithConfidence #EYParthenon

🌍 Trade, Talent, and Trust Across Borders Last week, I had the privilege of attending a conversation with Robert Zoellick, former President of the World Bank and U.S. Trade Representative, hosted by Rice University at the Baker Institute for Public Policy. It was truly inspiring to listen to one of the most influential policy architects of our time. Zoellick shared remarkable stories from his days serving under President George H.W. Bush and Secretary of State James Baker. One insight struck me in particular: today, trade is no longer just about the movement of goods and services across borders — it is about strategy, resilience, and above all, people. From my own career leading multinational and multicultural teams across the U.S., Mexico, Canada, India, and Latin America, I’ve seen how success depends on much more than contracts or supply chains. It comes from skilled talent working together across borders, building trust, and aligning around shared goals. North America has a unique advantage: ·        Complementary talent pools — a younger workforce in Mexico, highly skilled bases in the U.S. and Canada. ·        Deep supply chain integration — manufacturing, energy, logistics, and services that already connect our economies. ·        Shared values and institutions — frameworks like USMCA that encourage cooperation and competitiveness. But the real differentiator is people. When we unlock access to skilled professionals, enable mobility, and foster cultural collaboration, we don’t just move products and services — we move ideas, innovation, and growth. At Axia Global Hire, this truth is at the heart of what we do every day. We see how diverse perspectives drive smarter decisions, creative problem-solving, and long-term resilience for businesses. 💡 The lesson I take from this lecture — and from years of firsthand experience — is simple: Trade policy may set the stage, but it’s people who deliver the performance. 👉 I’d love to hear from my network: How have you seen cultural diversity and cross-border talent shape the outcomes of your business? #Leadership #Trade #MulticulturalTeams #Nearshore #GlobalTalent #AxiaGlobalHire

Just 5% of firms drive most productivity gains across advanced economies, says a new report. In Australia, many are young—but policies still reward small size over dynamism, missing the mark on growth. Read more: https://lnkd.in/gvq-YbQn

This article refers to an aspect that might seem minor, but it is anything but, especially because of what it reveals. The two largest consulting firms—McKinsey and Boston Consulting—are unable to sell in China. Understanding this aspect gives us many insights into today’s world and the changes we are witnessing, but above all, into the changes yet to come. To grasp the importance of these two firms, we need to go back to the end of the Second World War. The United States had not only won the war but was also the undisputed technological hegemon, and these firms essentially transferred American business know-how to countries that were being rebuilt (with IMF/US funds) such as Germany, Japan, or Korea. The consulting services of these firms were decisive, as would later be those of other companies, because they not only set the course but also helped close the technological gap. But let’s move to the present. China does not buy the services of these firms because it has its own roadmap, where the models of those companies are of little interest—not so much because of their origin, but because they are tied to a “past” way of doing things. A word of warning to those navigating the winds of change. And Europe? There is no way forward without projects and transnational cooperation, vision, leadership, and, of course, sacrifice. https://lnkd.in/ddv3Tejt

Tensions are rising—on borders, in supply chains, and in boardrooms. But are European CEOs taking the right steps to secure performance and resilience? BCG’s latest edition of the annual Transform and Special Situations (TSS) Index identifies: - 17% of Europe’s top public companies under transformation pressure - 6% facing restructuring-level challenges - $300B in economic value at risk Yet too few leaders are responding with a full-spectrum strategy. Explore the findings and recommendations by Renaud Montupet, Jochen Schoenfelder, Marc Gilbert, Maxime Zarka, Dominik Bill, and Louis Mangold: 👉 https://on.bcg.com/46Uarhz #BCGonTransformation #BusinessTransformation #Restructuring #BusinessTurnaround