Supply chain crisis: Quarter of all food and hospitality firms hit by low stock levels
More than a quarter of food and hospitality firms have been hit by low stock levels in recent weeks as Britain’s mounting supply chain crisis takes it toll, according to new figures published this morning.
The Office for National Statistics (ONS) said its recent business survey found that 27 per cent of food and accommodation firms have reported lower than normal stock levels, the worst-hit of all the sectors.
Low stock levels were also reported by 23 per cent of manufacturers and 25 per cent of firms in the wholesale and retail trade, repair of motor vehicles and motorcycles industry.
It comes amid a mounting supply chain crisis, which is increasingly leaving supermarket shelves bare and leading to a shortage of materials and higher prices across a raft of sectors, from housebuilding to car production.
Fast food chain McDonald’s had to pull milkshakes and bottled drinks from its menu earlier this week as it battled against supply problems amid a shortage of lorry drivers.
The latest ONS fortnightly business poll revealed that firms across the UK have been struggling to get hold of materials, goods and services.
More than one in seven construction firms – 15.4 per cent – said they have not been able to get the materials they need in recent weeks, while 9 per cent of hospitality firms also reported the same issue.
Nearly one in five manufacturing firms – 18.4 per cent – have had to change suppliers or find alternative ways to get materials, goods or services, with 16.5 per cent of construction firms and 11.4 per cent of food and hospitality companies reporting the same, according to the ONS.
It found less than half of builders and hospitality firms said they had been able to source all the materials, goods and services they needed without issues – at 42.1 per cent and 46.2 per cent respectively.
Just over half of manufacturers – 51.4 per cent – said they were able to get hold of the materials and goods they needed in the survey between 26 July and 8 August.
Housebuilders
The UK’s largest housebuilders have been reporting increased prices of vital materials such as cement and steel in recent weeks.
Grafton – the owner of builders materials supplier Selco – revealed on Wednesday that shortages of core materials due to supply issues had pushed up prices by around 7.5 per cent year-on-year in the first six months of 2021.
A lorry driver shortage in the UK is adding to post-Brexit disruption and worldwide material supply problems caused by the pandemic.
The ONS’s survey also showed the rising impact of the lorry driver shortage on the haulage sector, with the transportation and storage industry seeing nearly a fifth of firms – 18 per cent – having paused or stopped trading in mid-August.
This was largely driven by the freight transport by road industry and the unlicensed carriers industry, the ONS said.