More than a third (39%) of middle market business leaders have experienced disruptions with upstream supply chain, seeing an overall decline in customer satisfaction, while 28% said they have lost one or more key customers in the past year due to supply chain pressures, finds RSM’s ‘Real Economy’ report.

Simon Hart, lead international partner for RSM UK, said: ‘The closer a business is to the customer in the supply chain, the more likely it is to take some reputational hits. They are the ones that are going to be confronted about the delays or non-delivery, and that is when reputations become eroded and ultimately their business profitability declines.’

Supply chain disruptions since the pandemic have led to significantly weaker economic growth and higher inflation over the last year. Disruptions to the supply of raw materials, intermediate and consumer goods severely limited firms’ abilities to increase production and sales.