UK companies could do more to strengthen critical supply chains, report finds
By Staff Writer • Posted in Engineering Manufacturing
UK companies could play a much greater role in strengthening the nation's critical supply chains, but barriers including complex procurement processes, limited visibility of opportunities and insufficient buyer engagement are preventing many from doing so, a new report has found.
The findings, published in the UK Supply Report 2026 by the Critical Supply Group (CSG), show that almost three-quarters of surveyed UK suppliers to critical sectors believe they have the capability to provide further support.
The report comes at a time when supply chain resilience has become an increasing priority for governments and businesses, following conflict in the Middle East, the war in Ukraine and wider geopolitical uncertainty.
Critical sectors are the foundational systems, assets and networks that enable society and the economy to function. They include healthcare, defence, transport and energy infrastructure.
Headline findings from the UK Supply Report 2026 include:
- Almost three-quarters of surveyed UK companies supplying a critical sector (74%) believe they could supply more, with defence, civil nuclear and space the most commonly identified sectors.
- Procurement and tendering complexity (67%) is the biggest barrier preventing companies from supplying more to critical sectors, followed by limited visibility of opportunities (64%) and limited buyer engagement (39%).
- Energy is the operational dependency companies rely on most, ahead of transport and communications, underlining its importance to the resilience, competitiveness and security of UK supply chains.
- Europe is regarded as the UK's most trusted international supply partner, with 62% of companies identifying it as offering the most secure and reliable supply, ahead of the United States (27%) and China (18%).
- Access to critical inputs remains stable for most businesses but is becoming more constrained. Companies experiencing a change were almost four times more likely to report access deteriorating than improving.
George Middleton, Co-Chair of the Critical Supply Group and Director of MAP UK & International, said:
"Supply chains are fundamental to national resilience, security and growth. This report highlights significant capability and willingness within the UK supply base, with many businesses that could play a greater role in supporting the nation's critical sectors.
"The UK is a trading nation and we will continue to depend on and support trusted international partners, but we also need strong domestic capability.
"Through the Critical Supply Group, we bring together leading companies, government, academia and other stakeholders to produce and share information, build connections and enable collaboration. This helps support policy, procurement and investment decisions to strengthen the critical supply chains on which our daily lives depend."
The UK Supply Report is based on a survey of almost 200 businesses of all sizes and was delivered by MAP UK & International in collaboration with organisations including Made in Britain, the All-Party Parliamentary Manufacturing Group, the Chartered Institute of Procurement & Supply (CIPS), the Confederation of British Industry (CBI) and the Federation of Small Businesses (FSB), alongside organisations representing a range of critical sectors including healthcare, aerospace, defence, logistics and technology.
In the UK, government policy increasingly reflects the need to strengthen supply chain resilience through measures including the establishment of a Supply Chain Centre and ongoing procurement reform.
Minister of State at the Department for Business and Trade, Sir Chris Bryant MP, said:
"At a time of global uncertainty, secure supply chains are vital to our continued prosperity and growth.
"UK companies need to be at the forefront of our critical supply chains, and with the Supply Chain Centre, we now have an extra string to our bow to ensure our world-leading global trade status is protected."
The UK Supply Report also sets out a range of practical recommendations for government, public operators, strategic suppliers, major buyers and SMEs. These include strengthening strategic procurement and procurement processes, improving supplier visibility, making better use of existing UK capability, supporting resilience planning and deepening understanding of critical supply chains.
Many major buyers and operators of Critical National Infrastructure are actively reviewing procurement and supply chain strategies as resilience becomes an increasingly important commercial and strategic priority.
John Pearce, Chief Executive of Made in Britain, said:
"British manufacturing has never lacked capability. Across the UK there are thousands of businesses already supplying world-class products into healthcare, energy, defence, transport and countless other sectors. The question isn't whether we can make it here, but whether we're making the most of what British industry can offer.
"Global trade will always be essential, but recent events have reminded us that resilience matters. Buying British isn't about turning our backs on the world, it's about building stronger domestic supply chains, creating confidence through trusted relationships and recognising the wider economic and social value that British manufacturers deliver every single day."
Ben Farrell, CEO of the Chartered Institute of Procurement & Supply (CIPS), said:
"This report sends a clear message: the UK already has much of the capability it needs to build more resilient supply chains, but we are not yet making full use of it. Procurement has a critical role to play in connecting UK capability with commercial opportunity, strengthening national resilience and ensuring that security, competitiveness and growth are considered together. In an increasingly uncertain world, resilient supply chains are no longer simply an operational issue, they are a strategic national priority."
John Foster, Chief Policy and Campaigns Officer at the Confederation of British Industry (CBI), said:
"The resilience of the UK's critical supply chains is built on the expertise, capability and commitment of UK businesses. Businesses are ready to play a bigger role in supporting the UK's critical sectors, but they need procurement processes to give capable suppliers greater visibility of opportunities. By working in partnership, government and industry can strengthen resilience, boost competitiveness and drive long-term economic growth and security."
The report's findings have been shared with the UK Government and collaborating industry organisations through a dedicated briefing. They were also presented at the latest in an ongoing programme of Critical Supply Group roundtables, bringing together supply chain leaders from many of the UK's most strategically important companies alongside government representatives. These initiatives are helping to bridge resilience policy and industry practice across critical supply chains.
The full UK Supply Survey & Report 2026 is available at: www.criticalsupply.group/uk-supply-report-2026.