UK growth sectors warn demand will outstrip capacity

DHL Supply Chain has published research showing that 78% of UK businesses in four growth sectors expect demand to outpace available capacity within two years. The findings are based on a survey of 200 senior decision-makers across advanced manufacturing, life sciences, energy and infrastructure, and data centres.

The study found that 72% of respondents expect demand to keep rising over the same period, while only one in 10 said they were very confident they could add capacity quickly enough to capture that growth. Some 58% plan to increase capital investment, even as many report barriers outside their control.

The research suggests the constraint is broader than a lack of physical space. It describes capacity pressures as a mix of workforce availability, infrastructure limits, technology bottlenecks and operational demands that make expansion harder as demand grows.

Different sectors reported different pain points. Advanced manufacturing recorded the highest level of skills shortages, with 48% citing the issue, while energy and infrastructure businesses were most likely to identify planning and regulatory delays, at 34%.

Data centres stood out for technology and IT infrastructure pressures, with 50% of respondents in that sector identifying them as a barrier to expansion. In life sciences, 42% cited technology constraints and 40% skills shortages.

Sector pressure

The findings suggest investment alone is not solving the problem for many businesses. Although companies are spending on expansion and automation, long project lead times, infrastructure pressure and skills shortages are slowing the pace at which new capacity becomes available.

That matters for sectors seen as important to UK economic growth, particularly where demand is expected to remain firm. A mismatch between rising orders and the ability to scale operations can affect output, service levels and the timing of new projects.

Supply chains are becoming more central to how businesses manage these pressures. The report highlights visibility, flexible capacity and earlier operational planning as ways organisations can respond to shifts in demand and disruption while expanding.

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."

His comments framed the issue as one of execution rather than demand generation. The central challenge is not whether customers will need more goods and services, but whether businesses can build the facilities, systems and workforces required quickly enough.

Patterson added: "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."

The survey covered 200 decision-makers, with 50 respondents in each of the four sectors. That gives the results a cross-sector view of common problems while still showing how bottlenecks differ by industry structure and operational needs.

For data centres, the prominence of technology and IT infrastructure constraints is notable because the sector depends on complex supply chains for equipment, grid access, construction and specialist labour. Delays or shortages in any of those areas can affect deployment schedules and widen the gap between expected demand and available capacity.

In energy and infrastructure, planning and regulatory delays featured more strongly than in the other industries surveyed, underlining the role of public processes in shaping commercial timelines. In advanced manufacturing and life sciences, the results pointed more directly to labour and technical capability gaps.

Collaboration call

The findings also indicate that many of the limiting factors lie beyond the control of a single company. Businesses can adjust operations, invest in equipment and review supply chain arrangements, but they cannot solve broader shortages in labour, power connections, permitting or transport infrastructure on their own.

Patterson said: "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."