Saudi Press

Saudi Arabia and the world
Saturday, Nov 29, 2025

Energy crisis, labour shortages and supply chain issues hitting the UK - here's what we're short of and the industries under threat

Energy crisis, labour shortages and supply chain issues hitting the UK - here's what we're short of and the industries under threat

From "cancelled" Christmas dinners to numerous energy suppliers collapsing and items missing from supermarket shelves, many industry experts claim Britain is in crisis.

The UK economy has been disrupted by several factors including labour shortages, new immigration rules and the lingering effects of the pandemic.

There is estimated to be a shortfall of around 100,000 lorry drivers, and soaring energy costs have also added to the cost of food production and logistics.

• What is Britain running low on?


Food supplies


The use of CO2 is critical in the food supply chain - particularly when it comes to packaging and meat production. It is also used to stun animals prior to slaughter.

So the closure of fertiliser plants is having a knock-on effect on the food industry.

Ranjit Singh Boparan, the owner of Bernard Matthews and 2 Sisters Food Group, said supply issues, as well as a shortage of workers, will affect the supply of turkeys for Christmas.

CO2 is also injected into the packaging of some perishable foods including meat and salads to prevent the growth of bacteria - and can prolong the shelf life of products such as beef for around five days.

Ian Wright, the chief executive of the Food and Drink Federation, said consumers could start noticing shortages in poultry, pork and bakery products in the coming days.

Warburtons, one of the UK's biggest bread makers, announced a halt on its crumpet production at two out of four of its plants because they have run out of CO2.

Food grade CO2 is used for hundreds of products - so Britain is facing shortages of:

*  Packaged meats including poultry and pork
*  Packaged fresh foods and baked goods
*  Packaged baby foods
*  Crisps
*  Pet food
*  Beer and wine
*  Carbonated water and soft drinks

Christmas trees

Retailers are warning of a potential shortage of Christmas trees and higher prices this year following the labour and supply chain difficulties - since around one tenth of the real Christmas trees sold in the UK are imported.

Post-Brexit regulations and a stretched labour market could lead to shortages and higher demand for locally grown trees.

Mark Rofe, who owns ChristmasTrees.co.uk, said: "We've spoken to our UK growers and they are all facing the same challenges.

"They are seeing an increase in demand for their product, especially from clients who would usually import their trees from Europe, but are keen to avoid any red tape that could increase costs or cause delays for what is of course a highly seasonal and time-sensitive business."

Lorry drivers


The UK has been hit by a shortage of lorry drivers this summer, a crisis that has affected supermarkets, restaurants, and other retailers.

The shortfall has been triggered by an exodus of foreign nationals, post-Brexit immigration rules, and self-isolation requirements.

The lorry driver shortage has affected supermarkets, restaurants, and other retailers


McDonald's, KFC, Greggs, Subway and Nando's are among food retailers impacted by the truck driver shortages.

In August, McDonald's was forced to pull milkshakes and bottled drinks from its menu due to supply chain issues, while Greggs said some products containing chicken were missing from its shelves.

The UK's biggest dairy supplier, Arla, said that up to a quarter of supermarket milk deliveries were unable to get through due to a shortage of lorry drivers.

And the UK's biggest supermarket chains including Tesco, Sainsbury's, Morrisons, Co-op and Iceland Foods have all been affected by supply chain shortages due to disruptions to deliveries - with Tesco urging people not to panic buy.

Pet food


Such difficulties are bleeding across into other sectors, including the pet food industry.

Major supermarkets including Sainsbury's and Tesco reported widespread shortages of pet food back in March due to unanticipated high demand - with supply issues affecting wet food pouches for dogs and cats the most.

There are now concerns that UK pet food shortages could worsen into winter as empty shelves in supermarkets become more noticeable.

Bikes


Halfords, the UK's largest cycling retailer, said bike sales were down by almost 23% in the 20 weeks to 20 August compared to the same period last year.

It blamed supply chain disruption from imports to the shortage of lorry drivers, and Britain's bike shops are still struggling to keep up with demand.

Production was disrupted also as Asian factories temporarily closed due to COVID-19, which affected distribution, resulting in a reduced supply and increased demand.

Beer
Supermarkets have urged people not to panic buy


Wetherspoons said on 1 September that it was having problems with the supply of Carling and Coors beers and that it was the knock-on effect from industrial action by drivers acting on behalf of another brewer. Molson Coors, which makes the brands, also cited the HGV driver shortage.

Ivan Menezes, chief executive of the Johnnie Walker-to-Guinness drinks giant, told Sky News that supply chains had become "more challenging… particularly on logistics and shipping around the world and on procuring some of our packaging materials" but that he expected to be able to fulfil global demand.

Cars


In a headache for automakers, widespread closures of magnesium smelters in top producer China are due to a clampdown on emissions and shortages of energy, propelling prices of the metal to their highest since 2008.

Magnesium, which is also widely used in the aerospace industry, is needed to make aluminium alloys for the auto sector, which is already reeling from chip shortages.

The White House is set to discuss ways to overcome a semiconductor chip supply crisis that is cutting auto production around the world in a new round of meetings with major companies.

Automakers have felt the impact of supply chain shortages


Electronics


Electronics manufacturers have also become a victim of supply chain disruptions and component shortages.

Many components come from supply chains in Asia, and due to closures in China during the COVID-19 pandemic, the shortages have continued to impact manufacturers around the world.

Dwindling supplies have resulted in surging prices as demand for electronic components rises.

Construction materials


The lack of lorry drivers and high construction vacancies continues to impact the supply of construction materials - which has left the construction sector on its knees.

A shortage of key building materials such as roof tiles, cement and timber has impacted the industry for months, with prices climbing across several materials.

Amid the dwindling supplies, prices could climb higher in the short term, with data from the Office for National Statistics (ONS) showing the cost of materials rose by 20% between July 2020 and July 2021.

The construction sector is suffering with a shortage of key materials


• What caused the crisis?


As well as the labour shortages, new immigration rules and the lingering effects of the pandemic, soaring wholesale European natural gas prices also sent shockwaves through energy, chemicals and steel producers, and strained supply chains which were already creaking due to a shortage of labour and the tumult of Brexit.

Wholesale prices for gas have increased 250% since the start of the year, and there has been a 70% rise since August.

After gas prices triggered a carbon dioxide shortage, the government extended an emergency state support to avert a shortage of poultry and meat.

The hike in gas prices resulted in six firms folding this month: PfP Energy, MoneyPlus Energy, Utility Point, People's Energy, Green, Avro Energy.

There are fears that more could follow, with Bulb and Igloo reportedly on the brink of collapse. There are now some 40 suppliers in the UK market, sharply down from a peak of 70 in 2018.

• Why are there shortages?


The hike in gas prices has threatened to cause havoc on the food supply chain - which has led to warnings that shop shelves could be left bare in the coming weeks.

Some factories were forced to close down, stopping carbon dioxide production - which has critical uses in the meat production industry and in food packaging.

The government has said it has now struck a deal to avoid shortages in CO2.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Will Saudi Arabia End Up Bankrolling Israel’s Post-Ceasefire Order in Lebanon?
Saudi Arabia’s SAMAI Initiative Surpasses One-Million-Citizen Milestone in National AI Upskilling Drive
Saudi Arabia’s Specialty Coffee Market Set to Surge as Demand Soars and New Exhibition Drops in December
Saudi Arabia Moves to Open Two New Alcohol Stores for Foreigners Under Vision 2030 Reform
Saudi Arabia’s AI Ambitions Gain Momentum — but Water, Talent and Infrastructure Pose Major Hurdles
Tensions Surface in Trump-MBS Talks as Saudi Pushes Back on Israel Normalisation
Saudi Arabia Signals Major Maritime Crack-Down on Houthi Routes in Red Sea
Italy and Saudi Arabia Seal Over 20 Strategic Deals at Business Forum in Riyadh
COP30 Ends Without Fossil Fuel Phase-Out as US, Saudi Arabia and Russia Align in Obstruction Role
Saudi-Portuguese Economic Horizons Expand Through Strategic Business Council
DHL Commits $150 Million for Landmark Logistics Hub in Saudi Arabia
Saudi Aramco Weighs Disposals Amid $10 Billion-Plus Asset Sales Discussion
Trump Hosts Saudi Crown Prince for Major Defence and Investment Agreements
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Riyadh Metro Records Over One Hundred Million Journeys as Saudi Capital Accelerates Transit Era
Trump’s Grand Saudi Welcome Highlights U.S.–Riyadh Pivot as Israel Watches Warily
U.S. Set to Sell F-35 Jets to Saudi Arabia in Major Strategic Shift
Saudi Arabia Doubles Down on U.S. Partnership in Strategic Move
Saudi Arabia Charts Tech and Nuclear Leap Under Crown Prince’s U.S. Visit
Trump Elevates Saudi Arabia to Major Non-NATO Ally Amid Defense Deal
Trump Elevates Saudi Arabia to Major Non-NATO Ally as MBS Visit Yields Deepened Ties
Iran Appeals to Saudi Arabia to Mediate Restart of U.S. Nuclear Talks
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
Lawmaker Seeks Declassification of ‘Shocking’ 2019 Call Between Trump and Saudi Crown Prince
US and Saudi Arabia Forge Strategic Defence Pact Featuring F-35 Sale and $1 Trillion Investment Pledge
Saudi Sovereign Wealth Fund Emerges as Key Contender in Warner Bros. Discovery Sale
Trump Secures Sweeping U.S.–Saudi Agreements on Jets, Technology and Massive Investment
Detroit CEOs Join White House Dinner as U.S.–Saudi Auto Deal Accelerates
Netanyahu Secures U.S. Assurance That Israel’s Qualitative Military Edge Will Remain Despite Saudi F-35 Deal
Ronaldo Joins Trump and Saudi Crown Prince’s Gala Amid U.S.–Gulf Tech and Investment Surge
U.S.–Saudi Investment Forum Sees U.S. Corporate Titans and Saudi Royalty Forge Billion-Dollar Ties
Elon Musk’s xAI to Deploy 500-Megawatt Saudi Data Centre with State-backed Partner HUMAIN
U.S. Clears Export of Advanced AI Chips to Saudi Arabia and UAE Amid Strategic Tech Partnership
xAI Selects Saudi Data-Centre as First Customer of Nvidia-Backed Humain Project
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
President Trump Hosts Saudi Crown Prince Mohammed bin Salman in Washington Amid Strategic Deal Talks
Saudi Crown Prince to Press Trump for Direct U.S. Role in Ending Sudan War
Trump Hosts Saudi Crown Prince: Five Key Takeaways from the White House Meeting
Trump Firmly Defends Saudi Crown Prince Over Khashoggi Murder Amid Washington Visit
Trump Backs Saudi Crown Prince Over Khashoggi Killing Amid White House Visit
Trump Publicly Defends Saudi Crown Prince Over Khashoggi Killing During Washington Visit
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
Saudi Arabia’s Solar Surge Signals Unlikely Shift in Global Oil Powerhouse
Saudi Crown Prince Receives Letter from Iranian President Ahead of U.S. Visit
Saudi Arabia’s Crown Prince Begins Washington Visit to Cement Long-Term U.S. Alliance
Saudi Crown Prince Meets Trump in Washington to Deepen Defence, AI and Nuclear Ties
Saudi Arabia Accelerates Global Mining Strategy to Build a New Economic Pillar
Crown Prince Mohammed bin Salman Arrives in Washington to Reset U.S.–Saudi Strategic Alliance
Saudi-Israeli Normalisation Deal Looms, But Riyadh Insists on Proceeding After Israeli Elections
Saudis Prioritise US Defence Pact and AI Deals, While Israel Normalisation Takes Back Seat
×