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Economic Development

Supply chain disruption now one of the top threats to growth, º£½ÇÊÓÆµ managers warn in new poll

KPMG survey shows cyber security and climate issues also major risks to global growth

A sign on the doors of a branch of Nando's in White City, Manchester, last month tells customers that the store is closed. The chain had to temporarily close around 50 of its restaurants nationwide after running out of peri-peri chicken (Image: Peter Byrne/PA Wire)

Almost two thirds of º£½ÇÊÓÆµ chief executives have seen their supply chains come under strain during the pandemic while bosses around the world fear supply chain disruption - that's the message from a new survey as shortages hit the headlines across the country.

KPMG's global poll of CEOs found supply chain risk was one of the three biggest business challenges, alongside cyber security and environmental and climate issues.

Supply chain problems were seen as the main threat in sectors including consumer and retail, manufacturing and automotive.

READ MORE: Government 'floating' idea of allowing more EU HGV drivers to work here again, in bid to tackle mass shortages

The results are released as a lorry driver shortage, the pandemic and Brexit have helped lead to increasing supply chain problems in the º£½ÇÊÓÆµ, hitting sectors from retail to construction.

The KPMG 2021 CEO Outlook showed that 56% of chief executives globally – including 59% in the º£½ÇÊÓÆµ – say their business supply chain has been under increased stress since the start of the Covid-19 crisis.

Nearly a fifth of bosses worldwide (19%) are planning to mitigate the impact by “onshoring” more of their supply chain, with 16% of º£½ÇÊÓÆµ business leaders saying they would be boosting British supply over the next three years.

Almost one in three (30%) of global chief executives and 26% of º£½ÇÊÓÆµ bosses said they would be diversifying sources of input, by adding new locations to make their supply chains more resilient.