Businesses across the UK are bracing for another wave of inflationary pressure as escalating tensions between the US, Israel and Iran, continue to impact global oil markets, freight costs, and raw material pricing.
For manufacturers, distributors, and trade suppliers, the effects are already beginning to filter through supply chains, with many warning that the biggest price increases may still lie ahead.
Industry leaders say rising oil-linked material costs, combined with higher logistics expenses and supplier pressures, are creating a challenging environment for businesses that are reliant on imported goods and industrial consumables. While many companies are currently absorbing increases or working through existing stock, concerns are growing that consumers and trade buyers will begin to feel the full impact later this year.
Commenting on the Israel and US-Iran war and its impact on price rises, Freddie Miller, CEO at GTSE.co.uk said, “We’re closely monitoring the US-Iran war and its ongoing impact on global prices. Currently, trading remains buoyant and we’re managing the challenges as best we can given the volatile circumstances.
“Our core products like cable ties, tapes, fixings, and fastenings, are all impacted by oil prices, on multiple levels. Nylon and polypropylene costs have been rising since late February, and whilst we haven’t seen supply shortages yet, we’ve received force majeure notifications from suppliers across the Far East, flagging raw material pressures and cost increases at their end.
“Freight costs have also risen. Most UK logistics providers have introduced fuel surcharges and increased container rates, which adds to our landed costs. We’re factoring this in and planning accordingly.
“Our view is that bigger cost increases to consumers are still to come. Suppliers are largely selling through existing stock at older prices, so we expect another inflationary wave in the second half of the year. We’re working to get ahead of that now, committing to larger, earlier stock orders to secure supply, building an inventory buffer.
“Internally, we’ve made sure every part of the business understands what’s happening and why, ensuring that all departments are all pulling in the same direction. Externally, we’re being open with customers, setting expectations early and keeping them informed rather than letting cost changes come as a surprise.
“The situation remains uncertain and we’re not complacent about what the second half of the year may bring, but we’ll continue to adapt as things evolve.”
As geopolitical instability continues to affect global trade routes and commodity markets, businesses across manufacturing, construction, and trade supply sectors are likely to face sustained cost pressures throughout the remainder of the year. Many firms are now focusing on stock resilience, supplier diversification, and proactive customer communication in an effort to minimise disruption and maintain stability in an increasingly unpredictable market.
