Nearly One in Three Midlands and Northern Businesses Face Collapse Risk from Covid-19 Supply Chain Woes
Almost 30% of businesses in the Midlands and North of England are now on the brink of collapse due to Covid-19 disruptions hitting their supply chains. A new report by Durham University Business School digs deep into the data, analysing over 1.7 million companies across 99 sectors. The findings reveal a shocking vulnerability in how these firms operate amid ongoing pandemic pressures.
Covid Chaos: Midlands and North’s Supply Chains Struggling to Stay Afloat
The study, titled Covid-19 and Supply Chains in the United Kingdom: Impact & Mitigation, was penned by Prof. Kiran Fernandes, Dr. Atanu Chaudhuri, Dr. Manish Shukla, and colleagues from the Centre for Technology and Innovation Management (CITM). They surveyed nearly 1.74 million companies spread across 28 regions, focussing on how Covid’s supply chain shocks ripple through local businesses.
Key drivers of risk include:
- Complex supply chain structures
- Company resilience levels, both internal and external
- Managerial agility in decision-making
- Technology adoption and use
The report splits the firms into risk categories, finding 29% at high risk, while a further 35% fall into low or medium risk brackets.
Most Vulnerable Sectors: Real Estate, Food & Beverage, Construction and More
Certain industries are feeling the heat more than others. Real estate, food and drink, personal services, and construction are among the hardest hit. On the flip side, sectors like computer programming, management consulting, architecture, and parts of retail food—especially bakery production and distribution—are weathering the storm better.
“Most companies in our region had never experienced such an external shock and therefore were not prepared with mitigation strategies for their complex global supply chains,” said Professor Kiran Fernandes, Operations Management expert at Durham University Business School.
Expert Strategies and Free Consultations to Help Businesses Bounce Back
The report doesn’t just spell bad news. It outlines six targeted mitigation strategies tailored to the 99 sectors analysed. These offer a lifeline for managers and business owners scrambling to navigate this crisis.
Durham University Business School is now stepping up with free consultations for regional firms, tapping into their top international experts from CITM. These pros boast global experience in operations, innovation, and supply chain management — ready to help businesses build resilience and future-proof themselves in a post-Covid world.
“It is critical and timely that we work with our regional businesses and ecosystems to ensure that our expertise can be used to make them develop both short term and long term resilience strategies that can help them not only survive but compete in the post Covid19 environment,” added Professor Fernandes.
