Cyber attack fears have soared among UK manufacturers and retailers, yet half of retail businesses have no plans to strengthen their supply chains against future disruption, new figures reveal.
Analysis of the latest Office for National Statistics (ONS) data by delivery specialist Parcelhero shows growing concern about cyber threats, despite widespread gaps in business resilience planning.
The proportion of manufacturers worried about cyber attacks affecting their supply chains over the next 12 months has risen almost sixfold, from 3.2% in September 2024 to 18.5%.
Among wholesale and retail businesses, concern has climbed from 2.4% to 13.1%, while across UK businesses overall it has increased from 4% to 13.3%.
David Jinks, head of consumer research at Parcelhero, warned that cyber threats were increasingly being recognised as a serious risk to business operations.
“Cyber attacks used to be seen as an IT department problem.”
He said the latest ONS Business Insights and Conditions Survey showed manufacturers and retailers increasingly viewed cyber attacks as a threat to supply chains themselves.
Concerns about artificial intelligence (AI) are also growing, with manufacturers reporting an increase from 1.4% to 7.5% and retailers from 3.6% to 8.9%.
Across all businesses, the proportion identifying AI as a potential supply chain concern has risen from 2.9% to 10.1%.
The findings follow several major cyber attacks that have exposed vulnerabilities across British retail, manufacturing and logistics.
Marks & Spencer and the Co-op were both targeted in April 2025, with M&S suspending online orders for more than six weeks.
The Co-op reported that attackers obtained records relating to all 6.5 million of its members.
The Cyber Monitoring Centre estimated the combined economic impact of the incidents at between £270 million and £440 million.
A further attack on Jaguar Land Rover in August 2025 halted production and affected around 5,000 businesses in its supply chain.
The disruption was estimated to have cost the UK economy approximately £1.9 billion, potentially making it the country's most economically damaging cyber incident.
More recently, attacks on supermarket refrigeration systems across Europe have highlighted the potential consequences for food storage and distribution.
In October, refrigeration controllers at hundreds of French supermarkets were reportedly manipulated remotely, causing food spoilage and fires in some stores.
A second wave in early November affected more than 100 shops across several European countries, including Belgium, Ireland, Sweden and the Netherlands.
The incidents raised concerns about the vulnerability of internet-connected equipment used to maintain the cold chain.
Jinks warned that such attacks demonstrated how criminals could disrupt physical operations without necessarily stealing sensitive information.
“The fridge hacks show attackers no longer need to steal data to cause chaos. They can simply turn up the heat on the equipment that keeps stock fresh.”
Despite the growing risks, Parcelhero's analysis found that many businesses have yet to develop plans to improve supply chain resilience.
In manufacturing, 38.7% of businesses reported no planned action, while the proportion rose to 50% among wholesale and retail firms.
The situation was even more pronounced in transport and storage, where 56.5% planned no action and a further 33.5% remained unsure.
Only 5.9% of transport and storage businesses identified cyber attacks as a supply chain concern, despite the sector's central role in keeping goods moving.
Almost 45% reported no concerns about potential supply chain disruption, the highest proportion among the three sectors examined.
Among manufacturers planning improvements, 24.1% intended to strengthen relationships with key suppliers, while 13.4% planned to diversify suppliers across more countries.
A further 12.7% were considering stockpiling or increasing capacity to cope with sudden demand.
Retailers were less likely to report such measures, with just 15.2% planning to improve supplier relationships and 9.3% considering stockpiling or additional capacity.
The figures highlight a growing gap between awareness of supply chain threats and practical preparations to withstand disruption.
Jinks said businesses needed to translate rising concerns into meaningful resilience measures, particularly as AI introduces further challenges alongside opportunities.
“With AI adding a new layer of risk, firms should be turning that concern into concrete resilience plans.”
Parcelhero said AI was also becoming increasingly important to supply chain operations, with applications ranging from automated warehouses to AI-assisted shipping.
However, the company warned that businesses must strengthen their ability to withstand disruption as digital technology becomes more deeply embedded in manufacturing, retail and logistics.