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Gartner (NYSE:IT) has identified three critical priorities for chief supply chain officers (CSCOs) to address the impacts of the Israel-Iran conflict. The priorities include: assessing global transportation bottlenecks, preparing for supply chain cost volatility, and reviewing resilience strategies.
The conflict has significantly disrupted key shipping routes, with container traffic below pre-crisis levels in the Red Sea and Suez Canal, increased risks in the Strait of Hormuz, and pressure on major regional ports. Companies face rising costs across energy, transportation, insurance, inventory, and technology. CSCOs must work closely with CFOs to manage budget impacts and strengthen supply chain resilience through supplier network assessment and risk mitigation planning.
According to a Gartner Consumer Community survey of 212 US consumers, 47% of consumers plan to buy more American-made products this year amid economic uncertainty. The study reveals that 42% of consumers are postponing major purchases, up from 28% in 2024. Gartner projects that by Q3 2025, 60% of consumers will delay major purchases and turn to secondhand marketplaces by year-end.
The survey also found that while 68% of consumers prefer brands to remain neutral on social and political issues, 55% lose trust when brands reverse their stance on these matters. Notably, 33% of consumers who distrust such reversals reported boycotting brands in the past year, compared to 20% of those unbothered by stance changes.
According to Gartner's 2025 CMO Spend Survey, marketing budgets have remained flat at 7.7% of overall company revenue, matching the previous year's allocation. The survey, conducted among 402 CMOs and marketing leaders across North America, UK, and Europe, reveals that 59% of CMOs report insufficient budgets to execute their strategies.
Despite stagnant budgets, CMOs are focusing on productivity gains through AI and data analytics. Paid media dominates marketing spend at 30.6% of budgets. GenAI investments are showing ROI through improved time efficiency (49%), cost efficiency (40%), and increased content production capacity (27%). In response to budget constraints, 39% of CMOs plan to reduce both agency and labor spending, with many leveraging GenAI to decrease dependency on external agencies.
- Contract Value grew to $5.1 billion, +6.7% YoY FX neutral
- Diluted EPS increased to $2.71 (+1.5%)
- Operating cash flow surged to $314 million (+66.0%)
- Free cash flow reached $288 million (+73.3%)