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Increased demand impacted by supply chain disruption, says report

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Supply chain BCS
Image credit: Travel mania / Shutterstock.com

BCS has announced its findings from The Winter Report 2021/22, which highlighted an optimistic increase in demand – but concerns over supply chain.

The survey, undertaken by IX Consulting and commissioned by BCS, questioned over 3,000 senior data centre professionals across Europe.

It found the majority of respondents (98%) had seen demand for data centre services either maintained or increase – however, it also highlighted concerns about how to deliver this capacity when faced with a shortage of key skills and an ongoing disruption in the supply chain.

Supply chain issues had affected 91% of respondents over the past 12 months – impacting build professionals the most. According to the findings, 69% of developer/investor respondents and 62% of design, engineering and construction respondents reported that they had experienced supply chain volatility during 2021.

James Hart, CEO at BCS, said: “These well documented supply problems have led to delayed deliveries and higher prices. They are widespread and there is a general reduction in the supply and the reliability of supply visible in our sectors.  There are massive dislocations in the container market, shipping routes, ports, air cargo, trucking lines, railways and even warehouses. The result is shortages of key manufacturing components, order backlogs, delivery delays and a spike in transportation costs and consumer prices.

“Covid 19 has not only exacerbated these issues but has also brought about a shift in how we look at current supply chains. Certainly, more companies and governments are reviewing their supply chains for critical items, with a mind towards security of supply as well as cost. Our expectation and recent experience is that supply chains are already shortening as a response to Covid, either via reshoring, or as companies try to diversify their sources of supply. We at BCS are helping clients through this process and have mapped supply chains associated with the deployment of data centres.”

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