For decades, the guiding principle of supply chain management was simple: maximise efficiency and minimise cost. Today, a new paradigm has emerged. The relentless pursuit of leanness has given way to an urgent demand for resilience, forcing a fundamental rethinking of global manufacturing and distribution. This shift is particularly pronounced in Britain, where Brexit complexities have combined with global disruptions to create unique challenges for supply chain leaders, especially within the critical energy sector.
The COVID-19 pandemic was a seismic event that permanently altered the supply chain landscape. It exposed the profound fragility of "just-in-time" models that relied on distant, single-source suppliers. In the energy sector, this manifested as severe disruptions. For instance, lead times for critical grid components like large power transformers stretched from months to years, with the U.S. Department of Energy (DOE) noting average waits of 38 weeks in 2023. These delays stalled grid modernisation projects and highlighted a dangerous dependency on a limited number of overseas manufacturers.
For British businesses, these pandemic challenges were compounded by Brexit-related complexities. Research from 2025 shows that 70% of UK firms report higher supply chain costs due to new tariffs and trade rules, whilst 50% of companies have experienced significant delays, with customs procedures extending delivery timelines by an average of 30%. The combination has created what one manufacturing executive described as "managing supply chains whilst the rules of the game keep changing."
The automotive sector illustrates this dual challenge particularly clearly. Already vulnerable to pandemic-related semiconductor shortages, UK automotive manufacturers faced additional disruption from Brexit's impact on just-in-time production methods. Border delays and customs checks have proven particularly problematic for an industry that relies on components crossing borders multiple times during assembly.
Whilst the acute phase of the pandemic has passed, its effects linger alongside ongoing Brexit adjustments. Companies are still grappling with volatile shipping costs, unpredictable component availability, and the realisation that their supply networks lack the agility to withstand shocks. The crisis served as a powerful catalyst, forcing boards and executives to move supply chain risk from a line item in an operational report to a central focus of corporate strategy.
Layered on top of post-pandemic recovery are escalating geopolitical tensions and a renewed focus on economic nationalism. Trade policies, including significant tariffs implemented over the past year, are actively reshaping global trade flows. These measures are designed to reduce dependency on specific nations (notably China) and encourage domestic production in strategic sectors like clean energy.
According to a 2025 report from the Reshoring Initiative, tariffs have become a primary motivator for companies to relocate manufacturing, surpassing even government incentives in some cases. This is not merely a political trend; it is a strategic risk mitigation imperative. For energy manufacturing, where China controls vast portions of the supply chain (such as over 80% of global solar wafer production) this realignment is critical for national and economic security.
In response to these pressures, firms globally are actively moving production sites. This trend, encompassing both reshoring (returning manufacturing to the home country) and nearshoring (moving it to nearby countries), is accelerating. Data from the Reshoring Initiative shows that over 244,000 manufacturing jobs were announced in the U.S. in 2024 through reshoring and Foreign Direct Investment (FDI), with reshoring activities making up the majority.
For British businesses, the strategic calculus is more complex. Whilst some UK manufacturers are exploring reshoring opportunities to reduce dependency on complex EU supply chains, others are considering nearshoring within Europe to maintain market access whilst managing Brexit-related trade barriers. A 2024 survey revealed that 8 out of 10 companies identified Brexit as the "biggest supply chain disruption" of the past year, forcing fundamental reassessments of supplier networks and manufacturing footprints.
The energy sector presents particular opportunities for UK-focused supply chain reorganisation. The government's Clean Industry Bonus scheme, which rewards offshore wind developers for investing in domestic supply chains, signals official recognition of supply chain localisation benefits. With targets of 43-50GW of offshore wind capacity by 2030 and current installed capacity at just 14.8GW, there are substantial opportunities for British firms to capture more of this growing market through strategic supply chain positioning.
This shift is also visible in trade data. As reported by Deloitte, Mexico has overtaken China as the United States' top trading partner, a clear indicator of the nearshoring trend in action. Similarly, UK businesses are building more regionalised supply networks, though Brexit complexities mean this often involves careful balance between European market access and domestic capability development.
The convergence of these disruptions has catalysed a new focus on building resilient, agile, and sustainable supply chains. This is not a temporary fix but a long-term strategic pivot. Three major trends are defining this new era for energy manufacturing.
The goal is no longer to find the single cheapest supplier but to build a robust and diversified supplier base. This involves a "multi-shoring" strategy that blends domestic production with nearshoring and "friend-shoring" (partnering with allies that hold shared geopolitical and economic interests).
The UK's approach to this trend is shaped by both global pressures and Brexit realities. The government's emphasis on energy security, demonstrated through initiatives like Great British Nuclear (GBN) and the National Wealth Fund, reflects official recognition that strategic supply chain diversification is critical for national resilience. For energy manufacturing, where China controls vast portions of global supply chains, this realignment is particularly important for British firms seeking to reduce single-source dependencies.
The U.S. DOE's Four-Year Review of Energy Supply Chains emphasises this approach, particularly for securing critical minerals essential for batteries and renewable technologies. Similarly, UK energy policy increasingly focuses on supply chain localisation, with the Clean Power 2030 Action Plan explicitly targeting domestic capability development in offshore wind, solar, and nuclear technologies. By diversifying sources, companies can mitigate the risk of a single point of failure, whether it's a factory shutdown, a natural disaster, or a sudden policy change.
You cannot manage what you cannot see. The lack of transparency beyond Tier 1 suppliers was a critical failure point exposed by recent crises. In response, leading firms are heavily investing in digitalisation. This includes adopting advanced platforms like SAP Ariba and Coupa for procurement, alongside real-time analytics tools that provide end-to-end visibility into the entire supply network. This data-driven approach enables predictive risk assessment, allowing companies to identify potential bottlenecks and vulnerabilities before they escalate into full-blown disruptions. It transforms the supply chain from a reactive mechanism to a proactive, intelligent ecosystem.
Environmental, Social, and Governance (ESG) criteria are no longer a "nice-to-have" but a core business imperative, especially in the energy sector. Consumers, investors, and regulators are demanding greater accountability for a product's entire lifecycle. For energy manufacturers, this means ensuring the ethical and sustainable sourcing of raw materials like lithium, cobalt, and rare earth metals. It also involves reducing the carbon footprint of logistics and manufacturing processes. Leaders in this space are embedding ESG priorities directly into their procurement strategies, recognising that a sustainable supply chain is inherently a more resilient and reputable one.
Whilst technology, strategy, and capital are essential for this transformation, they are insufficient without the right people. The single greatest challenge facing supply chain transformation today is a severe and growing talent shortage, a problem that Brexit has significantly exacerbated for UK businesses.
The U.S. DOE report identifies workforce challenges as a significant vulnerability, citing hiring difficulties and a need for specialised skills. This challenge is particularly acute in Britain, where Brexit has created additional complexity. Research shows that 45% of UK logistics companies report difficulties in filling roles, as the reduction in EU workers has directly impacted operational capacity. A Financial Times survey revealed that workforce shortages in sectors such as logistics and manufacturing have increased operational challenges, leading to lower productivity and higher labour costs as companies compete for a smaller pool of workers.
The modern supply chain leader is no longer just a cost manager. They must be a strategist, a technologist, a diplomat, and a risk manager rolled into one. They need the expertise to navigate complex geopolitical landscapes, implement sophisticated digital tools, integrate sustainability into global sourcing practices, and now, critically for UK businesses, manage the ongoing implications of Brexit on cross-border operations. Finding these individuals is intensely competitive in a market where traditional talent sources have been constrained.
This is where strategic partnership becomes critical. Supply chain and procurement functions have evolved from back-office operations into engines of growth and resilience. To build the smarter, more agile supply ecosystems required for today's turbulent world, organisations must secure leaders who can deliver measurable operational impact whilst navigating the unique challenges of the post-Brexit business environment. At The Consultancy Group, we specialise in connecting businesses with these elite supply chain and procurement leaders: the very individuals capable of turning today's challenges into tomorrow's competitive advantages, whether that's managing complex customs procedures, developing alternative supplier networks, or capitalising on emerging opportunities in the UK's evolving energy sector.
The era of prioritising supply chain efficiency above all else is definitively over. The future belongs to organisations that build networks defined by resilience, agility, and intelligence. The journey involves a strategic realignment of global manufacturing footprints, a deep investment in digital visibility, and an unwavering commitment to sustainable practices. However, the cornerstone of this transformation is human capital. Securing visionary leaders who can navigate this complex new world is not just an HR function; it is the central strategic challenge for any business serious about thriving in the 21st century.
About the Author
Thea Bennett is a Consultant in the Supply Chain & Procurement Transformation practice at The Consultancy Group. She specialises in connecting organisations with leaders who can drive procurement optimisation and supply chain resilience, helping businesses align their operations with strategic objectives in an increasingly dynamic global market.
Work with a best-in-class recruitment team to optimise your supply chain and procurement goals. Book your free consultation today.
[1] U.S. Department of Energy. (2024). 2021–2024 Four-Year Review of Supply Chains for the Energy Sector Industrial Base. Retrieved from https://www.energy.gov/sites/default/files/2024-12/20212024-Four%20Year%20Review%20of%20Supply%20Chains%20for%20the%20Energy%20Sector%20Industrial%20Base.pdf
[2] Reshoring Initiative. (2025). 2024 Annual Report Including 1Q2025 Insights. Retrieved from https://reshorenow.org/content/pdf/2024-1Q2025_RI_DATA_Report.pdf
[3] International Energy Agency. (2024). Energy Policy Review United Kingdom 2024. Retrieved from https://iea.blob.core.windows.net/assets/908bbafb-16e1-440b-bd86-5f894b56772d/UnitedKingdom2024.pdf
[4] UK Government. (2024). Statutory Security of Supply Report 2024. Retrieved from https://www.gov.uk/government/publications/statutory-security-of-supply-report-2024
[5] Zycus. (2025). Brexit Impact on Supply Chain in UK: Challenges and Strategic Responses. Retrieved from https://www.zycus.com/blog/procurement-strategies/brexit-impact-on-supply-chains-in-uk
[6] Deloitte Insights. (2024). Supply chain resilience. Retrieved from https://www.deloitte.com/us/en/insights/industry/manufacturing-industrial-products/global-supply-chain-resilience-amid-disruptions.html
[7] Maersk. (2024). Supply chain disruptions in 2025. Retrieved from https://www.maersk.com/insights/resilience/2024/12/23/what-to-expect-in-2025-hurdles-to-resilient-antifragile-supply-chains
