A procurement perspective for the UK

The UK economy is facing fresh challenges: April’s S&P Global PMI dropped to 48.2 (the sharpest decline in over two years!!), pointing to a slowdown in private sector activity.  For procurement leaders, this isn’t just another data point.  It’s a signal that the environment is shifting, and fast.

With both the IMF and EY lowering their growth forecasts for the UK in 2025, and new US tariffs hitting key exports like steel and aluminium, the pressure is building.  But beyond the headlines, the impact is being felt in the day-to-day: sourcing decisions are harder, cost forecasts are more volatile, and supplier conversations are more complex.

Procurement teams are now operating in a world where uncertainty is the norm: global supply chains, already stretched by the aftermath of the pandemic, are being reshaped by geopolitical tensions and shifting trade policies.  For UK businesses, especially those in manufacturing, construction, and automotive, even small disruptions can have a big impact.

Raw material costs are a prime example: steel prices have jumped again following the latest US tariff announcements, with aluminium and copper also remaining unpredictable.  At the same time, labour shortages in logistics and warehousing continue to drive up costs and slow down operations.  It’s a tough environment; and procurement is right at the centre of it!

In response, leading procurement teams are making smart, strategic moves: they’re diversifying their supplier base to reduce risk, investing in digital tools that provide real-time visibility and faster decision-making, and building stronger, more collaborative relationships with suppliers to unlock innovation and agility.

This mindset is already yielding results; one FTSE 250 manufacturer recently restructured its procurement function, embedding category leads directly into business units.  The result?  Faster responses to market changes and better alignment between sourcing and commercial goals.  It’s a clear example of how procurement can drive value when it’s empowered to lead.

Looking ahead, it’s clear that volatility isn’t going away; but resilience isn’t just about weathering the storm: it’s about being ready to adapt, anticipate, and grow through it.  That means treating procurement as a strategic function, not just a cost centre, and investing in the right people, processes, and platforms to achieve that strategic vision.  And most of all: it means staying close to your data, and even closer to your suppliers.

At Grafton Recruitment, we’re helping procurement leaders navigate this changing landscape with the right talent and insight.  If you’re re-thinking how your team is structured or where the next capability gap might appear, we’d love to support that conversation.