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The top 10 countries for supply chain resilience

Every year, FM Global, a mutual insurance company, ranks 130 of the world’s countries on their supply chain resilience. Its Global Resilience Index is designed to guide business leaders in finding new investor opportunities, selecting stable suppliers and identifing customers that could be vulnerable. The company assesses countries on a litany of factors including productivity, local supplier quality, inherent cyber risk, urbanization rate and eight other components that could pose a threat to its supply chain or make it more efficient. 

10 | Qatar

Qatar

Qatar offers many elements that earn it a place on the list of top 10 countries in terms of supply chain resilience. In addition to a high degree of security, the Middle Eastern country – the only one to make it to the list – is recognized for its efficient labor and goods markets as well as its macroeconomic stability. 

9 | United States (Region 3)

United States

Given the geographic spread of the United States, the country is broken into three regions with Region 3 denoting the central area. Though this central area – which includes the states of Kansas, Colorado, Kentucky and South Dakota – is subject to a diverse assortment of natural hazards, including tornados, ice storms and floods, it still exhibits far less exposure to these potentially disastrous hazards than the areas to the east or west. 

8 | Finland

Finland

Finland made a strong showing in several key factors that the index takes into consideration. Due to the high levels of private and public investment, Finland has exhibited innovative capabilities that it has channelled into both research and development. In addition, the country places a strong emphasis on education and training, as well as linking academia and companies within the private sector. 

7 | Ireland

Ireland

Ireland makes a strong showing in this year's index due in part to its reduced likelihood of being exposed to natural disasters and hazards. It is also known for keeping tight regulations on its fiscal expenditures and accountability. 

6 | Norway

Norway

Though Norway's fire risk management could be improved, the areas in which it demonstrates excellence more than make up for this. The country continues to show strong results in areas such as control of corruption, low political risk, economic productivity and resilience in the event of an oil shock. 

5 | Germany

Germany

Germany scored high on the supply chain factors that the FM Global Resilience Index looks at when computing its rankings. The European country’s high ranking in the index was driven – at least in part – by its strong showing in areas such as being able to pinpoint where products, parts and components are – in transit – from one part of the process to the next. 

4 | Sweden

Sweden

Sweden gained the number four spot in the index because its exposure to natural hazards is lower than average. The FM Global Resilience Index places a hefty importance of a country's exposure to things such as floods, earthquakes and windstorms that it cannot control and often cannot plan for adequately. 

3 | Japan

Japan

In spite of Japan's history of natural disasters – the country was hit with a tsunami that generated 45-foot high walls of water and a 9.0 earthquake during the same year – FM Global recognized it for the powerhouse it is in terms of supply chain resilience. Power generation and local production were both devastated in 2011 when Japan was hit with double weather disasters. In about four months after the March weather events, there was evidence that Japan was well on its way to recovery. Its resilient business system, coupled with the cooperative capitalism that the country is famous for, were the keys for its recovery. These components are the same ones that help Japan rank highly on this index. 

2 | Luxembourg

Luxembourg

While the tiny country of Luxembourg has nearly always ranked well on the Global Resilience Index, it moved significantly upward from its eighth-place slot in 2013 to the number two rank for 2017. The reasons for its rapid rise can be summed up by factors such as a strong and growing network of service providers as well as a stable financial sector. The governmental regulations in place are accommodating to businesses that could put the country in an advantageous position in terms of the fallout from Brexit. 

1 | Switzerland

Switzerland

Switzerland earns the top place in the world for supply chain resilience. When judged in three separate categories – risk quality, economic and supply chain factors – Switzerland ranks as number one. A major driver in its resilience is the country’s resistance to fuel price fluctuations. In addition, Switzerland also ranked high because of its superior supply chain metrics. This is because the country has an excellent infrastructure, corruption is low and the quality of its local suppliers is unquestioned. Switzerland is also an economically stable country which helps to balance its exposure to storms and other hazards that occur naturally. 

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10 | Qatar

Qatar

Qatar offers many elements that earn it a place on the list of top 10 countries in terms of supply chain resilience. In addition to a high degree of security, the Middle Eastern country – the only one to make it to the list – is recognized for its efficient labor and goods markets as well as its macroeconomic stability. 

9 | United States (Region 3)

United States

Given the geographic spread of the United States, the country is broken into three regions with Region 3 denoting the central area. Though this central area – which includes the states of Kansas, Colorado, Kentucky and South Dakota – is subject to a diverse assortment of natural hazards, including tornados, ice storms and floods, it still exhibits far less exposure to these potentially disastrous hazards than the areas to the east or west. 

8 | Finland

Finland

Finland made a strong showing in several key factors that the index takes into consideration. Due to the high levels of private and public investment, Finland has exhibited innovative capabilities that it has channelled into both research and development. In addition, the country places a strong emphasis on education and training, as well as linking academia and companies within the private sector. 

7 | Ireland

Ireland

Ireland makes a strong showing in this year's index due in part to its reduced likelihood of being exposed to natural disasters and hazards. It is also known for keeping tight regulations on its fiscal expenditures and accountability. 

6 | Norway

Norway

Though Norway's fire risk management could be improved, the areas in which it demonstrates excellence more than make up for this. The country continues to show strong results in areas such as control of corruption, low political risk, economic productivity and resilience in the event of an oil shock. 

5 | Germany

Germany

Germany scored high on the supply chain factors that the FM Global Resilience Index looks at when computing its rankings. The European country’s high ranking in the index was driven – at least in part – by its strong showing in areas such as being able to pinpoint where products, parts and components are – in transit – from one part of the process to the next. 

4 | Sweden

Sweden

Sweden gained the number four spot in the index because its exposure to natural hazards is lower than average. The FM Global Resilience Index places a hefty importance of a country's exposure to things such as floods, earthquakes and windstorms that it cannot control and often cannot plan for adequately. 

3 | Japan

Japan

In spite of Japan's history of natural disasters – the country was hit with a tsunami that generated 45-foot high walls of water and a 9.0 earthquake during the same year – FM Global recognized it for the powerhouse it is in terms of supply chain resilience. Power generation and local production were both devastated in 2011 when Japan was hit with double weather disasters. In about four months after the March weather events, there was evidence that Japan was well on its way to recovery. Its resilient business system, coupled with the cooperative capitalism that the country is famous for, were the keys for its recovery. These components are the same ones that help Japan rank highly on this index. 

2 | Luxembourg

Luxembourg

While the tiny country of Luxembourg has nearly always ranked well on the Global Resilience Index, it moved significantly upward from its eighth-place slot in 2013 to the number two rank for 2017. The reasons for its rapid rise can be summed up by factors such as a strong and growing network of service providers as well as a stable financial sector. The governmental regulations in place are accommodating to businesses that could put the country in an advantageous position in terms of the fallout from Brexit. 

1 | Switzerland

Switzerland

Switzerland earns the top place in the world for supply chain resilience. When judged in three separate categories – risk quality, economic and supply chain factors – Switzerland ranks as number one. A major driver in its resilience is the country’s resistance to fuel price fluctuations. In addition, Switzerland also ranked high because of its superior supply chain metrics. This is because the country has an excellent infrastructure, corruption is low and the quality of its local suppliers is unquestioned. Switzerland is also an economically stable country which helps to balance its exposure to storms and other hazards that occur naturally. 

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