Three in ten (30%) Irish business leaders believe that supply chain disruptions have worsened in the past five years. The rising cost of materials is cited as the biggest supply chain threat being currently faced by Irish businesses, with more than six in ten (63%) of Irish business leaders stating this to be the case. Tariffs and cyber threats were also found to be major supply chain risks currently faced by Irish organisations (60%).
According to results of new research into business supply chains, conducted by the global insurance brokerage, risk management and consulting firm, Gallagher, one in ten (10%) Irish businesses expect supply chain issues to worsen in the next five years.
The results of the research, which are unveiled in a new global supply chain research report, provide a comprehensive view of the concerns, strategies, and risk management needs of business leaders in today’s uncertain world. The report, Supply Chains, Redrawn: Lessons from Business Leaders Across Industries, is informed by views from company directors in seven countries, across a broad cross-section of business sizes and industries. Ireland and the UK are two of the seven countries included in this report.
Other risks to supply changes as highlighted by the research include natural disasters/climate change (57%); geopolitical risks (50%); and labour disruptions (50%).
Commenting on the findings of the research, Laura Vickers, Managing Director of Commercial Lines for Gallagher said:
“Some of the biggest supply chain disruptions ever experienced have arose in recent years. These include the Covid 19 pandemic, the 2021 Suez Canal blockage, the Russian-Ukraine war, and recent extreme weather events and natural disasters. So, it’s no surprise that supply chain issues have really come to the fore for businesses worldwide in recent years, and Irish businesses are facing these challenges as much as others.”
Table 1: Current and potential supply chain risks faced by Irish businesses
Looking Ahead
Irish business leaders are slightly more optimistic than their UK counterparts – one in ten (10%) Irish business executives expect supply chain issues to worsen in the next five years compared to almost one in five (19%) respondents in the UK.
Further highlights from the Gallagher report include:
- Labour disruptions (labour movement, workforce mobility, or strikes) and human rights issues top the list of supply risks which Irish business leaders are expecting in the future, with more than four in ten (43%) Irish business leaders anticipating that each of these issues will pose a risk to their firm (see Table 1).
- Four in ten (40%) Irish business executives expect sanctions and export controls to present a supply chain risk into the future, with a similar number (37%) citing cargo theft.
- Interestingly, while the rising cost of materials and tariffs top the list of the supply chain risks currently facing Irish businesses, the research found that Irish business leaders expect these risks to subside in the future.
- Only 27% of Irish executives expect the rising cost of materials to be a supply chain issue into the future, while 30% cited tariffs.
Managing future supply chain risks
Over six in ten (63%) business executives in Ireland are investing in technology – specifically digital tools, AI, or monitoring systems – to help improve oversight and responsiveness and help manage supply chain risks. This is a slightly lower number than in the UK, where almost seven in ten (68%) of business executives said they were doing so. More than seven in ten (73%) Irish business leaders are also looking to alter supplier relationships in some capacity, due to past, current, and predicted future supply chain disruption. This compared to 64% of UK respondents.
More than six in ten (63%) Irish business executives and 61% (UK) also confirmed that they are adopting onshoring[1], nearshoring or friendshoring to help manage the supply chain risks currently impacting their business. This reflects the growing concerns held by Irish business leaders around geopolitical developments.
Just over a quarter (28%) of Irish businesses who experienced supply chain losses in the last 12 months had insurance in place to fully cover losses, leaving many firms facing potentially substantial costs to bear. This figure is significantly lower than the response from businesses in the UK (with 46% of affected businesses having losses fully covered) and the global response (32%).
Ms Vickers added:
“Irish businesses aren’t alone in facing ongoing supply chain disruption, and many of the issues that are affecting trade here are global. Escalating geopolitical conflict, the rising price of materials, and an influx of cyberattacks all presented unique and complex challenges to businesses last year and continue to concern decisionmakers in 2026. The continued disruption underscores the need to consult a risk management advisor to assess individual concerns and source comprehensive risk management and insurance products that may help to boost financial resilience.”