Retailers and manufacturers are anxious about supply chains but transport & storage firms stay stoic
The latest ONS survey reveals that around 60% of UK retail and manufacturing sector firms are concerned that the increasing cost of sourcing materials will impact their supply chains, while new trade barriers and rising transport fees are also a concern for many. However, the international delivery expert Parcelhero says surprisingly fewer transport & storage sector companies are worried.
The latest Office for National Statistics (ONS) Business Insights Survey shows that many UK retailers and manufacturers are concerned about their supply chains. 60.7% of retailers and 58.7% of manufacturers expect the increased cost of sourcing materials will have an impact. Additionally, 22.3% of retailers and 24.5% of manufacturers expressed concerns about increased barriers to trade over the next 12 months.
The latest Business Insights survey was held in late March, as companies braced themselves for President Trump’s new tariffs before learning the full details. However, while many retailers and manufacturers were already poised for pain, the international delivery expert Parcelhero says notably fewer transport & storage sector companies (the category which includes logistics, parcels, haulage and warehousing firms) were concerned about supply chain issues.
Parcelhero’s head of consumerresearch, David Jinks M.I.L.T., says: ‘Between 17-30 March, UK businesses were asked to list their concerns surrounding supply chains and trade barriers. This was before the rollercoaster tariffs’ ride that followed President Trump’s so-called ‘Liberation Day” on 2 April (which resulted in a blanket 10% tariff on goods from almost all nations, including the UK, threatened many with even higher reciprocal tariffs and ended with China facing an increase to 125%) but the writing was already on the wall.
‘With that in mind, it is not surprising that around 60% of retailers and manufacturers are concerned about the increased costs of sourcing materials on their supply chains. Perhaps the only surprise is that just 28.4% of their transport & storage sector partners say they have concerns about this issue. Similarly, while nearly 25% of retailers and manufacturers are concerned about the impact of increased trade barriers on their supply chains, a remarkably low 8.4% of transport & storage sector companies are worried about this.
‘Almost across the board, however, industry sectors register greater concern about barriers to trade compared to when they were last asked about this issue in December 2024. Back then, 22.1% of manufacturers and 19.9% of retailers said they were worried about new trade barriers, compared to 24.5% and 22.3% in this latest survey. Only 4.4% of transport & storage companies expressed concern about increasing trade barriers in December, compared to the latest survey’s 8.4%.
‘Considering that transport & storage companies are at the “coalface” of international trade and Customs barriers, it seems the sector was determined to remain stoic at the prospect of collapsing globalisation.
‘While not as concerned about some aspects of supply chains, transport & storage sector companies are worried about increased transport costs although, again, not as much as their retail and manufacturing partners. 32.3% of transport & storage companies say increased transport costs are a concern. That’s a sizeable number but still notably fewer than the 47.2% of retailers and 39.5% of manufacturers who acknowledge concern about the impact of increasing transport costs on their supply chains.
‘It’s not clear whether it’s pragmatism or simply blind optimism that led just 4.4% of transport & storage companies to list shipping disruption as a concern, compared to 15.9% of manufacturers and 9.7% of retailers. New obstructions could potentially include red tape around new tariffs and cuts to international cargo and maritime services caused by a drop in demand. For example, “blank” (cancelled) sailings between China and the USA are already rising rapidly.
‘Some companies took active measures to avoid the immediate impact of new tariffs. 8.6% of manufacturers and 7.7% of retailers admit that they have been stockpiling over the past 12 months to increase their supply chain resilience. Again, only 1.7% of transport & storage companies say they have taken this measure.
‘Shipments to the USA will be particularly impacted by tariff changes. The USA is the UK’s biggest individual trading partner and any disruption to these services could be significant. Live information on US courier services can be seen at https://www.parcelhero.com/en-gb/international-courier-services/usa-parcel-delivery