The Four External Threats that UK Businesses are Worried About

Business modelling is enjoying something of a revival in response to continuous geopolitical and economic headwinds. A recent survey by Board International found that 76% of the UK companies polled were now taking business planning more seriously. Global issues seem to have forced key decision makers to reconsider the importance of preparing for the unfolding of different events.

It’s becoming increasingly necessary for businesses to keep one eye on global affairs in an attempt to stay ahead of possible complications. Those that had followed the rising tension between Russia and Ukraine for example, may have foreseen the rise in fuel costs as a result. Once identified as a threat, plans can be put in place for alternative strategies should the worst happen.

So, what are UK businesses currently worried about? We take a look at the four threats that topped the survey’s list of UK companies’ concerns.

1. Fluctuating oil prices

With little sign of an end in sight, the Russian invasion of Ukraine is understandably still front and centre of the thoughts of many. Given their continuous hostilities, sanctions made against Russian exports are unlikely to be lifted, which puts the likes of the UK in a vulnerable position.

With alternative options severely limited, the UK (among others) find themselves overexposed to potential fuel price rises. Globally, 29% of respondents named this as a concern, whereas 38% of UK companies were sufficiently worried to make this the UK’s chief concern moving forward.

2. Labour shortages

Industries that previously employed numbers of EU workers have obviously been hit by Brexit restrictions over recent years, and this can have a knock-on effect for other businesses too. One of the most obvious casualties of this has been those involved in the food supply chain. Horticultural and seasonal picking jobs have long been the province of EU workers, with 60% of the seasonal workforce typically being made up of migrant workers on six-month visas.

With less visas given out year-on-year, the industry is expecting struggles with labour shortages in the near future. Those further down the food supply chain could experience delays and produce shortages as a result.

34% of UK businesses cited this as a worry.

3. Cyber-attacks

A 2024 Gov.uk report revealed that half of all businesses had reported experiencing a cyber-attack of some sort within the last 12 months. This only increased among larger companies, with 70% of medium-sized businesses, and 74% of large corporations experiencing similar.

Luckily, only 17% of businesses were exposed to viruses or malware, with less sophisticated cyber-attacks such as phishing and the impersonation of other businesses making up the bulk of all instances.

Nevertheless, cyber-attacks remain a concern for many businesses, with 28% of UK businesses, and 34% of global firms listing it as a principal concern.

4. Blocking of key supply channels

Businesses that rely on particular resources can find themselves vulnerable if they struggle to get hold of them. Recent developments in the Red Sea may have prompted such fears to rise to the surface. Hostilities there have effectively made a key shipping channel a no-go zone, with Houthi forces disrupting any supplies they consider affiliated to Israel.

Rather than taking the normal route then, shipping vessels are instead having to travel around the west coast of Africa instead. This adds around nine extra days to shipping times, and a whole lot more fuel. With the cost and time increase passed on to those importing or exporting items, many companies have already reported shortages of stock.

28% of UK companies found this a key concern for the future.

Businesses need to stay agile

Of the UK companies polled, 77% believed that they are equipped for agile planning. How that planning takes form though, will determine whether these businesses survive any future issues.

While Russia’s invasion of Ukraine may have been predicted by some, unforeseen recent threats such as the COVID-19 pandemic took most by surprise. In such cases, planning for specific events may not be helpful, so an overall agile approach is recommended as well. Ensure that your processes are fluid enough to be altered if needed, and have back-up plans ready for each.

Do you think your company can survive another external threat?

We specialise in helping businesses to become more resilient to external threats. Recent conditions have been incredibly tough for UK companies, and new threats only make things more difficult for those still recovering from past issues.

Is your business ready for any threat that comes its way? Call for free, no-obligation advice from one of our friendly specialists. You’ll be given all the guidance you need for the best route to take your business.

As business rescue specialists, we can help you to discover the best possible solution to any issues your company might be having. Call us on 0800 975 0380, or email [email protected] for a free consultation.