BAKU, Azerbaijan, October 4. A significant portion of European Union (EU) firms have faced substantial challenges to their business activities and supply chains in recent years, according to a report by the European Investment Bank (EIB), Trend reports.
The EIB Investment Survey (EIBIS) reveals that since early 2022, 37 percent of EU importers have cited limited access to key commodities and raw materials—such as steel, copper, fossil fuels, and lithium—as major obstacles to their operations. These materials are crucial for both the green and digital transitions, which are high priorities for the EU as it pushes towards sustainability and technological advancement.
The survey also highlights how disruptions in logistics and transport have hindered 34 percent of EU importers, while 23 percent reported difficulties in sourcing semiconductors and microchips. A further 27 percent of companies pointed to challenges in accessing other components, semi-finished products, and equipment. These hurdles reflect the ongoing difficulties EU firms face in navigating a post-pandemic global market, exacerbated by geopolitical tensions and shifting trade dynamics.
Interestingly, the report notes a divergence between the experiences of EU and US importers. While US firms are more likely to cite access to raw materials and logistical challenges as key obstacles, they are less likely than their EU counterparts to report difficulties in sourcing semiconductors. Additionally, US firms are more concerned about the impact of changes in customs and tariffs, reflecting different trade priorities and challenges faced across the Atlantic.
Supply chain disruptions are not just a temporary issue but are seen as long-term barriers to investment by many EU businesses. Beyond immediate logistical challenges, firms also face broader concerns, such as the availability of skilled staff (53 percent), high energy costs (50 percent), and uncertainty about future market conditions (38 percent). In this context, the shortage of critical materials and transport difficulties rank alongside traditional concerns like labor regulations, making them a top priority for companies navigating complex supply chains.
The knock-on effects of these disruptions extend beyond importers. According to the EIB report, more than one-third of EU importers have reported that supply chain issues—whether limited access to raw materials or logistical delays—have had a significant impact on their operations. Even firms that do not rely on imports are feeling the strain as these disruptions ripple through supply chains, affecting the broader business landscape. Around a quarter of non-importers also cited difficulties accessing raw materials or components, underscoring how supply chain issues are becoming a universal concern across sectors.
As the EU continues its push towards a green economy and digital transformation, these obstacles pose a significant challenge. The availability of critical resources like lithium for electric vehicle batteries, and copper for renewable energy infrastructure, will be essential in determining the pace of this transition. Addressing supply chain bottlenecks and enhancing resilience in trade networks will be key for EU firms to overcome these challenges and maintain their competitive edge in a rapidly evolving global market.
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