Most EU Companies Faced Disruptions in Their Global Supply Networks Between 2021 and 2023

A large majority of medium and large companies across the European Union reported difficulties in their international supply structures over the past three years, according to newly published data. The findings show that four out of five firms had to deal with at least one significant obstacle or made adjustments to how they source, produce or distribute goods internationally.

Rising costs were among the dominant pressures. Nearly two-thirds of firms pointed to higher energy-related expenses, while more than half said they were affected by increasing prices for raw materials and other inputs. Many companies also reported that the lingering effects of the COVID-19 period continued to cause operational problems during this timeframe.

Public policy developments added further strain. More than a quarter of businesses said that sanctions related to Russia had a marked impact on their cross-border activities. Close to four in ten firms pointed to challenges linked to meeting environmental rules, noting that new requirements at national or EU level influenced how they structure their international operations.

The results stem from a new EU-wide statistical exercise that examined how companies organise their production and sourcing across borders, building on earlier voluntary surveys carried out in previous years.

Source: EUROSTAT