Price Bailey reports on the Current challenges and trends facing SME firms in the UK.
Price Bailey reports that the supply chain is the lifeblood of businesses, connecting them to the resources, goods, and markets they need to thrive. In an ever-changing global economy, disruptions can ripple through industries, altering how businesses operate and compete. Using insights from the Business Insights and Conditions Survey (BICs) data—waves 118 and 119— our first article in our supply chain series delves into the supply chain challenges faced by UK businesses in September 2024.
While the data paints an encouraging picture of resilience for many, with over half of businesses reporting no disruptions, a deeper look reveals a nuanced story. Accessibility to global supply chains remains more challenging than domestic ones, and sectors like wholesale and retail continue to feel the strain, albeit at reduced levels compared to previous years. (See adjacent Image).
Over half of businesses that have not stopped permanently trading experienced no disruptions in both domestic and global supply chains during the period 1-30 September 2024. It is also clear that accessibility to the global supply chain is seemingly worse than the domestic one. While this is partly due to more businesses not accessing the global supply chain, a proportion of businesses are unsure on whether they experienced any disruption.
There are several factors that can contribute to businesses not wanting to access the global supply chain. For example:
A significant portion of businesses in these sectors are not experiencing global supply chain disruptions. This may be the result of a greater reliance on global supply chains in some subsectors or divergence in supply models, some larger businesses may have their own distribution networks and overseas factories that are not as readily impacted by external factors.
Compared to the other industries, wholesale and retail faced the greatest disruptions. However, the proportion of businesses experiencing these issues is much lower compared to 2022, an almost 58% decrease. This trend can be seen across the board, as the proportion of businesses experiencing global supply chain disruption in each industry has decreased (significantly, in some cases) from 2022.
It could be that the majority of industries have seen their proportion of businesses who did not access the global supply chain increase. There is a possibility that more businesses are finding ways to decrease their reliance on global supply chains in order to minimise disruptions, which can be caused by the reasons outlined previously, that can lead to delays and unexpected costs.
The current state of the supply chains offers both reassurance, and areas for concern. While many businesses are navigating domestic and global networks without major disruptions, challenges like skilled workforce shortages, changing consumer expectations, and global political issues persist.
These pressures highlight the need for businesses to adapt and continuously innovate, whether through reducing reliance on global supply chains or investing in technology to enhance efficiency.
By understanding these challenges and planning accordingly, businesses can better position themselves to remain resilient in a shifting landscape.
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Article written by Sîoned Davies - Market Research & Data Executive at Price Bailey
