A study of 200 senior decision-makers in advanced manufacturing, life sciences, energy and infrastructure, and data centres found that four in five expect a capacity crunch within the next two years, despite businesses investing proactively in expansion.
The capacity challenge extends beyond physical space. It includes the people, infrastructure, technology and operational capability businesses need to meet growing demand.
According to the research commissioned by DHL Supply Chain across four of the UK’s priority growth sectors, 72% of businesses forecast demand to keep rising over the next two years, but only one in ten are very confident they can build capacity fast enough to capture future growth.
Key findings
- 78% expect demand to outpace their organisation’s available capacity within two years
- 72% expect demand to continue rising over the same period
- 58% plan to increase capital investment
- Infrastructure constraints and skills shortages are among the most frequently cited barriers to expansion
The report reveals that demand is growing into a capacity base that is already stretched. So, despite businesses investing in automation and technology, factors beyond their direct control, including workforce availability, infrastructure pressures and long project lead times, are hindering the rate at which new capacity is becoming available.
The pressures differ by sector. Advanced manufacturing reports the highest rate of skills shortages (48%), energy and infrastructure the highest rate of planning and regulatory delays (34%), and data centres the highest rate of technology and IT infrastructure constraints (50%). In life sciences, technology (42%) and skills shortages (40%) are the main barriers.
Mark Patterson, Chief Customer Officer, DHL Supply Chain UK&I, said: "The evidence shows that businesses are investing and expanding to prepare for growth. Yet most expect demand to outstrip the capacity they can add and are concerned they won't be able to capitalise on it.
“While the projection may look concerning, with the right support, there are some practical steps businesses can take to optimise the capacity they have and respond more effectively to demand changes.
“No organisation can address structural constraints alone. Closer collaboration across businesses, supply chains, government and industry will be essential if the UK is to convert expected demand into sustainable growth.”
With skills shortages, infrastructure constraints and longer lead times limiting the pace of expansion, supply chains have become central to how businesses manage growth. Greater visibility, flexible capacity and earlier operational insight can help organisations respond to changing demand, protect service during disruption and scale without sacrificing performance or resilience.
Read the full DHL Supply Chain UK Capacity Crunch Report, including sector findings and practical recommendations here