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Cyber attack fears soar in UK manufacturing and retail, but action plans lag behind

Concern about cyber attacks disrupting UK supply chains has risen sharply among manufacturers and retailers, but many businesses have yet to put resilience measures in place, according to analysis from delivery specialist Parcelhero.

Citing the Office for National Statistics’ latest Business Insights and Conditions Survey, Parcelhero says 18.5% of manufacturers now identify cyber attacks as a supply-chain concern for the next 12 months, compared with 3.2% in September 2024. Among wholesale and retail businesses, the figure has risen from 2.4% to 13.1%. Across UK businesses overall, concern has increased from 4% to 13.3%.

Concerns about artificial intelligence are also growing. The proportion citing AI as a potential supply-chain risk has risen from 1.4% to 7.5% in manufacturing and from 3.6% to 8.9% in retail, according to the figures highlighted by Parcelhero.

Major disruptions put supply-chain security in focus

David Jinks M.I.L.T., Head of Consumer Research at Parcelhero, says cyber security is increasingly being recognised as an operational and supply-chain issue rather than solely an IT responsibility.

Parcelhero points to the attacks affecting Marks & Spencer and the Co-op in 2025, as well as the disruption to Jaguar Land Rover and its suppliers, as examples of how incidents can have consequences beyond the companies initially targeted.

The company also highlights reported attacks on internet-connected refrigeration equipment at European supermarkets, illustrating how connected physical infrastructure can become a point of vulnerability for retail operations and distribution networks.

Resilience planning remains limited

Despite rising concern, Parcelhero says 38.7% of manufacturers, 50% of retailers and 56.5% of transport and storage businesses report no planned action to improve supply-chain resilience.

Among manufacturers, improving relationships with key suppliers is the most frequently cited planned response at 24.1%, followed by diversifying suppliers across more countries at 13.4% and stockpiling or additional capacity at 12.7%.

For retailers, 15.2% plan to strengthen supplier relationships, 9.3% are considering stockpiling or surge capacity and 8% cite demand management.

For winter sports brands, distributors and retailers, the findings underline the importance of reviewing digital dependencies, third-party systems, stock availability and continuity plans ahead of periods of peak seasonal demand.

Jinks argues that businesses need to translate growing awareness into practical resilience measures while also recognising the opportunities AI presents for logistics and supply-chain operations.

Source: Parcelhero, drawing on the ONS Business Insights and Conditions Survey. Parcelhero’s related report, Putting the AI into Supply ChAIns, examines the role of AI in global supply chains.

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