Digital Transformation

Irish supply chains face shifting threats as digital and strategic resilience gain prominence

Monday, 23 March 2026 8:54AM UTC

New research reveals Irish firms are increasingly investing in digital tools and strategic reforms to combat ongoing supply chain challenges, amid concerns over rising costs, geopolitical risks, and future disruptions.

Three in ten Irish executives say supply-chain disruption has intensified over the past five years, with soaring input prices now the dominant worry for businesses across the Republic, according to new research by Gallagher.

The firm’s report, Supply Chains, Redrawn: Lessons from Business Leaders Across Industries, found 63% of Irish business leaders identify the rising cost of materials as the principal current threat to their supply chains. Tariffs and cyber threats were flagged by 60% of respondents, while natural disasters and the effects of climate change concerned 57%, and geopolitical risks and labour disruption each worried around half of those surveyed. One in ten Irish firms expect supply-chain problems to worsen over the next five years.

“Some of the biggest supply chain disruptions ever experienced have arose in recent years. These include the Covid 19 pandemic, the 2021 Suez Canal blockage, the Russian-Ukraine war, and recent extreme weather events and natural disasters. So, it’s no surprise that supply chain issues have really come to the fore for businesses worldwide in recent years, and Irish businesses are facing these challenges as much as others,” Laura Vickers CIP, Managing Director of Commercial Lines for Gallagher, said, commenting on the findings.

The research shows Irish leaders are comparatively upbeat relative to peers in the UK; 10% of Irish respondents expect deterioration over five years versus 19% in the UK. Still, the picture for what lies ahead is shifting. While cost inflation and tariffs dominate current worries, fewer executives expect those pressures to persist long term, only 27% anticipate rising materials costs remaining a future issue and 30% name tariffs as an ongoing risk. By contrast, labour disruptions and human-rights issues are rising in prominence, with more than four in ten Irish leaders anticipating each will become future challenges.

Gallagher reports businesses are already adapting. Over 60% of Irish executives are investing in digital tools, artificial intelligence and monitoring systems to bolster visibility and responsiveness, and 73% are altering supplier relationships in response to disruption. The firm also finds onshoring, nearshoring and friendshoring are being adopted by roughly six in ten respondents as firms seek to reduce geopolitical exposure. Yet insurance cover for recent losses appears limited; only 28% of Irish firms that suffered supply-chain losses in the past year had full insurance cover, notably lower than the 46% reported in the UK.

Other studies and industry advisers corroborate the broad trends Gallagher identifies. An Aon survey places supply-chain or distribution failure among the top three risks for Irish companies and reports that two-thirds of organisations have already recorded losses tied to supply failures, while three quarters have been affected by commodity-price or material shortages. Research from the Strategic Banking Corporation of Ireland shows rising input costs are a dominant concern for SMEs, with around 75% rating high material costs as a substantial risk and 69% naming tariffs as a key worry. KPMG Ireland urges diversification of supplier bases and deeper supplier relationships to strengthen resilience.

Global analyses underline systemic challenges that complicate those remedial steps. McKinsey finds raw-material shortages remain widespread yet many firms lack visibility beyond first-tier suppliers, increasing vulnerability in complex multi-tier networks. The World Economic Forum warns trade-policy uncertainty, including tariffs, can amplify cyber risk by creating volatile demand and supply patterns that invite disruption. Taken together, these findings suggest Irish firms face a mix of transitory and structural risks that require both tactical and strategic change.

“Irish businesses aren’t alone in facing ongoing supply chain disruption, and many of the issues that are affecting trade here are global. Escalating geopolitical conflict, the rising price of materials, and an influx of cyberattacks all presented unique and complex challenges to businesses last year and continue to concern decisionmakers in 2026. The continued disruption underscores the need to consult a risk management advisor to assess individual concerns and source comprehensive risk management and insurance products that may help to boost financial resilience,” Ms Vickers added.

Industry recommendations emphasise three priorities: improve upstream visibility through digital solutions and supplier mapping; diversify sourcing across geographies and trusted partners; and reassess risk-transfer strategies so firms are not left exposed when disruption strikes. For many Irish companies, moving from reactive to anticipatory supply-chain management will determine whether short-term shocks become long-term setbacks.

Source: Noah Wire Services

More on this

https://www.ajg.ie/rising-costs-tariffs-and-cyber-threats-top-current-supply-chain-risks-for-irish-firms/ - Please view link - unable to able to access data
https://www.ajg.ie/rising-costs-tariffs-and-cyber-threats-top-current-supply-chain-risks-for-irish-firms/ - A recent study by Gallagher reveals that 30% of Irish business leaders believe supply chain disruptions have worsened over the past five years. The rising cost of materials is identified as the primary threat, with 63% of leaders citing it. Tariffs and cyber threats are also significant risks, each affecting 60% of businesses. Looking ahead, 10% of Irish businesses anticipate further supply chain issues in the next five years. The study highlights other concerns, including natural disasters (57%), geopolitical risks (50%), and labour disruptions (50%).
https://www.independent.ie/business/supply-chain-break-down-risk-races-up-2024s-threat-list-for-irish-firms/a900247213.html - An Aon survey indicates that 'supply chain or distribution failure' is now the third-biggest risk for Irish firms, following cyber attacks and business interruption. Over two-thirds (67%) of Irish organisations have suffered losses due to supply chain failures, and 75% have been financially impacted by commodity price risks or material shortages. The survey also highlights that cyber attacks and data breaches have become top concerns for Irish companies, surpassing economic slowdown worries.
https://www.echo.ie/small-firms-say-that-high-costs-of-material-pose-substantial-risk/ - Research from the Strategic Banking Corporation of Ireland (SBCI) reveals that rising input costs are among the biggest concerns for Irish small and medium-sized enterprises (SMEs). Three-quarters of SMEs consider the high cost of materials a significant risk, and 71% cite access to finance as a major concern. Additionally, 69% of SMEs view the impact of tariffs as a key risk, especially with potential 30% tariffs on EU goods entering the US.
https://www.kpmg.com/ie/en/home/insights/2025/04/strengthening-irish-business-strategy.html - KPMG Ireland emphasizes the need for businesses to diversify their supply chains to enhance resilience. By spreading suppliers across different geographical regions, companies can mitigate risks associated with operational, financial, or legal challenges. The report also highlights the importance of building strong relationships with suppliers, especially in sole sourcing scenarios, to ensure a steady flow of materials and components.
https://www.mckinsey.com/capabilities/operations/our-insights/taking-the-pulse-of-shifting-supply-chains - McKinsey's survey reveals that 83% of companies have experienced raw-materials shortages over the past year, with 90% aiming to increase resilience. However, 45% of respondents lack visibility into their upstream supply chain beyond first-tier suppliers. The report underscores the challenges in understanding complex, multitier supply chains and the need for improved risk management practices.
https://www.weforum.org/stories/2025/05/how-trade-policies-are-expanding-supply-chain-cyber-risks/ - The World Economic Forum discusses how trade uncertainties, including tariffs, are becoming significant challenges for businesses, amplifying cyber risks. Tariffs can induce volatile demand and supply, negatively affecting supply chains and triggering disruptions in trade. Organizations are compelled to reevaluate trade relationships and consider reshoring, nearshoring, or hiring new suppliers to mitigate these risks.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The article was published on 20 March 2026, which is recent. However, the content is based on a press release from Gallagher, which typically warrants a high freshness score.

Quotes check

Score: 7

Notes: The article includes direct quotes from Laura Vickers, Managing Director of Commercial Lines for Gallagher. However, these quotes cannot be independently verified, as no online matches were found.

Source reliability

Score: 6

Notes: The article originates from Gallagher's own website, which is a reputable source within its niche. However, as the content is based on a press release, it may lack independent verification.

Plausibility check

Score: 7

Notes: The claims made in the article align with industry trends and are plausible. However, the lack of independent verification and reliance on a press release raises concerns about the accuracy of the information.

Overall assessment

Verdict (FAIL, OPEN, PASS): FAIL

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The article is based on a press release from Gallagher, which raises concerns about the independence and accuracy of the information. The lack of independent verification and reliance on a single source contribute to a medium level of confidence in the content's reliability.

Supply chain disruption
Irish business
Risk management