Martin Skeens, third-party risk and compliance subject matter expert at Dun & Bradstreet, explains why midsized U.K. businesses are having a tougher time achieving supply chain resilience than their larger counterparts.

According to D&B’s latest U.K. Supply Chain Continuity Index, covering some 10,000 businesses worldwide, supply chain reliability is deteriorating across the board, with confidence levels declining 23.7% from the previous quarter. But the results are even more disturbing for midsized firms, which reported a 44.6% drop in confidence during that period.

Why the disparity between large and midsized organizations? Skeens says the latter often lack the resources for “deep supply analysis.” The ability to carry out detailed scenario planning leaves them more vulnerable to supply chain shocks. Many larger firms, by contrast, can afford to invest in proactive risk management, armed with the capital, global networks and technology infrastructure necessary to build a buffer against instability. Smaller organizations are finding it more difficult to achieve greater supply chain resilience through supplier diversification, which often requires an upfront investment in capital. What’s more, Skeens says, the gap in performance between midsized and large companies is widening.

Factors behind those disturbing results include the continuing fallout from the COVID-19 pandemic, the impact of Brexit, growing geopolitical tensions, and uncertainties arising from the Trump Administration’s imposition of tariffs on nearly all of the United States’ trading partners, including those from the U.K. That last factor has some companies stockpiling inventory in warehouses while they await clarification on the size and scope of the tariffs.

Skeens sees some hope in the recently announced trade deal between the U.S. and U.K., although the details of that pact are yet to be determined. Stronger trade ties are also in the works between the U.K. and European Union.

Looking ahead, Skeens says, D&B’s Supply Chain Continuity Index will be focusing on the need for supply chains to extend visibility beyond Tier 1 suppliers, as well as secure alternative sourcing in the event of disruption.