UK Firms Warned Over Fragile Supply Chains Amid Preparedness Concerns
A report by consultancy SCALA highlights the vulnerability of UK businesses to supply chain disruptions, with only a third fully prepared for future shocks. The study reveals that 47% of companies depend on just three customers for over half of their revenue, increasing their exposure to global volatility. Disruptions in shipping routes and energy supplies, particularly due to tensions in the Middle East, are expected to affect costs, lead times, and service levels. Preparedness levels vary, with 33% of firms having implemented resilience strategies, while others are still developing plans or have yet to start. The report also points out structural risks from concentrated manufacturing in regions like China, Europe, and the UK, coupled with limited customer diversification, creating single points of failure in supply chains. 
