One In Three Australian Businesses Plan Price Rises As Supply Chain Disruptions Persist

Australian consumers face the prospect of higher prices, reduced product choices and longer wait times as businesses battle ongoing global supply chain disruptions.

Research from the British Standards Institution (BSI) has found that a third (33 per cent) of Australian businesses are actively planning to increase prices over the next six months to offset the cost of continuous operational disruption.

The global survey, conducted by Censuswide, polled 1,600 procurement, supply chain, risk and operations professionals across Australia, the UK, US, Germany, France, Italy and Canada. Respondents worked across the retail and consumer goods, food and beverage, agriculture and pharmaceuticals sectors.

Consumer impact on the horizon

The findings present a challenging outlook for shoppers. More than a quarter (28 per cent) of Australian companies plan to reduce the range of products or SKUs on offer in the next six months, while 30 per cent are already pausing new orders altogether.

A further 32 per cent expect to pause orders within the year. The vast majority (85 per cent) of businesses indicated they are currently warning, or about to warn, customers about shortages, delays or dependency risks.

The disruptions are expected to affect everything from consumer electronics to medicines.

Persistent disruption becoming the norm

BSI’s resilience experts describe the current environment as a “new normal of near-constant disruption,” driven by geopolitical turmoil, climate and weather-related incidents and digital transformation.

Practice Director of Supply Chain Resilience at BSI, Tony Pelli, warned that the era of stability in global trade has ended.

“The era of smooth, predictable global trade that defined the last three decades is behind us. Today’s supply chains operate in a world shaped by geopolitical competition, climate disruption and increasing uncertainty,” he told media.

Pelli added that the effects would be felt well beyond boardrooms.

“Businesses are facing a new normal of near-constant disruption, and we are likely to see no let up in the coming months and years. As our research shows, this is not just a concern for those managing operations; we are expecting it to directly impact consumers in the coming months.”

“Whether it will be empty shelves, higher prices or delays to receiving orders, impacts are likely to trickle down to the public as businesses battle one disruption after another.”

Preparedness gaps exposed

The research highlights gaps in how well Australian organisations were braced for recent shocks. Looking at the past six months – a period marked by extreme weather events, the breakout of the Iran war, earthquakes in the Philippines and Venezuela and severe heatwaves across Europe – just four in ten (40 per cent) Australian businesses considered themselves fully prepared for raw material or component shortages.

That figure stands out given the scale of disruption already experienced. Some 44 per cent of Australian organisations reported having directly experienced climate and extreme weather disruptions in the past year, the highest rate among the categories tracked and above the global average of 40 per cent.

A further 39 per cent suffered supply chain hits from geopolitical events, and 29 per cent reported issues arising from raw material or component shortages.

Cyber and technology failures also affected 40 per cent of Australian businesses over the same period, slightly above the global average of 38 per cent.

Structural shifts over short-term fixes

Australian companies are moving beyond reactive measures and making longer-term structural changes to their supply chains.

Close to four in five (82 per cent) are currently or imminently stockpiling or building strategic inventory buffers. A similar proportion (79 per cent) are either already nearshoring their supply chain or considering doing so in the next 12 months, with 36 per cent already nearshoring and 42 per cent planning to begin.

With key shipping routes disrupted and high levels of freight theft, 84 per cent of businesses are already changing or planning to change their modes of transporting products. That figure sits above the global average of 79 per cent.

In the next six months, close to a third (32 per cent) expect to find new suppliers, while a fifth (20 per cent) expect to shift trade routes.

The pressure is also being felt in the labour market. One in four (25 per cent) Australian businesses indicated they expect to cut jobs or reduce recruitment due to supply chain pressures.

Technology as a resilience tool

Despite the headwinds, Australian business leaders remain focused on building resilience through technology investment. Some 87 per cent expressed confidence that their organisation will be better prepared for supply chain disruptions in 12 months’ time.

That confidence is backed by rapid deployment of digital tools. Some 83 per cent of Australian businesses are rolling out AI predictive analytics for supply chain monitoring, while 81 per cent are integrating real-time data across their systems.

Pelli stressed that technology alone would not be enough without broader collaboration.

“For business leaders, building resilience requires stronger collaboration, improved visibility across supply chains and more proactive approaches to managing risk,” he outlined.

How Australia compares globally

Australia’s figures largely track with global averages, though some differences emerge.

While 33 per cent of Australian businesses plan to raise prices, the global average sits slightly higher at 36 per cent. The proportion of businesses planning to reduce their product range (28 per cent) matches the global figure exactly.

Australian businesses are, however, more likely to be changing transportation modes (84 per cent versus 79 per cent globally) and more likely to be warning customers about delays and shortages (85 per cent compared to 81 per cent globally).

The nearshoring trend also tracks closely, with 79 per cent of Australian businesses currently or planning to nearshore, against a global average of 78 per cent. Stockpiling activity is similarly aligned, at 82 per cent locally versus 80 per cent globally.

The rate of extreme weather disruption experienced by Australian firms (44 per cent) sits above the global average of 40 per cent, reflecting the country’s exposure to climate-related events over the past year.

Last Updated on August 11, 2026 by Nick Ross