Stock shortages and supply chain issues pile pressure on East Anglia businesses

  • More than a third of mid-sized businesses in East Anglia say stock shortages are putting pressure on how they operate
  • A lack of overseas workers, exacerbated by the pandemic and Brexit, is one of the main reasons for recruitment issues
  • More than a third of East Anglia businesses will have to temporarily reduce products or services to manage staff shortages.

Stock shortages and supply chain issues are piling increasing pressure on East Anglia businesses, as the Government continues to grapple with the fallout from Brexit and the pandemic.

According to BDO’s latest Rethinking the Economy survey of 500 mid-sized businesses, more than a third of regional companies (39%) admitted that unexpected delays from domestic suppliers were significantly affecting their ability to operate at normal levels, with the same number citing low stock levels and more than a quarter blaming staff shortages.

The survey showed that a lack of overseas workers, exacerbated by Brexit and the pandemic, was one of the biggest issues when recruiting staff, with 39% of mid-sized businesses stating that a lack of available talent in the region was also fuelling the problem.

As a result, all respondents said they intended to reduce their product lines or services to help manage staff shortages, with 32% admitting they would have to act within the next month if the situation doesn’t change. Many businesses anticipate that this reduction in services will only be a temporary measure, with 42% of companies planning to make changes to the way they work, in order to make the company more attractive to potential candidates.

Phil Hall, partner in the East Anglia, said: “Much has been made of the desperate need for HGV drivers and the domino effect this is having downstream throughout the supply chain. However, the issue of staff shortages is not unique to the logistics sector. Many industries across the region are struggling to meet recruitment demands at the moment, with little sign of the problem abating in the short-term.

“COVID-19 and Brexit are two of the biggest contributors and the lack of available talent and skills within the region is a real cause for concern. As such, businesses are having to think creatively in order to circumnavigate this growing issue – whether that’s through increasing salaries, offering permanent remote or hybrid working, or introducing referral bonuses.”


The Rethinking the Economy survey showed that despite the issue of staff shortages, which is causing the biggest impact on regional businesses at the moment (35%), East Anglia companies were still optimistic about the rate of recovery, with nearly a third stating that it will take less than 12 months for the business to return to pre-pandemic revenues. In the next three months, the key business priorities are making loan repayments (45%), managing domestic supply chains (32%), and growing revenues (29%).

Hall added: “Despite the considerable challenges being posed throughout the supply chain, East Anglia businesses clearly have one eye on the future. Their confident and forward-looking approach makes them more open to growth, with the vast majority of regional leaders actively seeking additional capital over the next 12 to 18 months – 49% of which will be used to fund mergers and acquisitions. As we head into a difficult winter period, that desire and ambition should hold businesses in good stead to tackle the challenges in front of them.”

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