Irish manufacturers are dependent on increasingly complex global supply chains for their of raw materials and components. With this complexity comes inherent vulnerability, whether from geopolitical turmoil arising from conflicts in Europe or the Middle East or heightened trade tensions elsewhere, or climate-related challenges such as extreme weather events.
The fragility of supply chains is something Irish manufacturers increasingly have to grapple with, says Martin Winters, managing director of engineering solutions firm Suretank. Developments such as Brexit and the war in Ukraine have had a direct impact on sourcing critical materials.
“At Suretank, for instance, we’ve experienced challenges in procuring steel from eastern Europe, which has traditionally been a reliable supply region,” he says. “Additionally, trade policy shifts further afield, such as the introduction of new tariffs in the United States, have added further complexity to our supply-chain operations.” These factors underscore the need for greater resilience and adaptability in global sourcing strategies, he says.
Technological shifts have also played a big role. “For example, the scale of investment by Microsoft in the EU has introduced new dynamics into the market,” says Winters. “Additionally, the surge in demand for AI chips has placed pressure on supply chains, particularly in terms of sourcing the components and energy required to power these technologies.”
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As AI continues to evolve and become more integrated into industrial processes, Winters says the demand for supporting infrastructure will only intensify.
Sinead Keogh, director of BioPharmChem Ireland, says the traditional emphasis on cost efficiency, lean inventories and single-source suppliers is now showing its limits. “Events like political instability, climate-related shocks, or factory shutdowns in one region can reverberate across the entire system, affecting everything from raw materials to finished therapies,” she says.
The Irish pharmaceutical sector relies on key inputs, such as high-grade chemicals, sterile packaging materials, and advanced equipment, many of which are produced by a small number of suppliers concentrated in specific regions of the world, Keogh explains.
While this interconnectedness supports innovation and economic growth, it also introduces significant vulnerabilities. “Disruptions, whether geopolitical, regulatory, environmental or logistical, can delay access to treatments, hinder scientific progress and impact global health outcomes,” she says. This is partly because any change in supplier within the pharmaceutical supply chain requires stringent regulatory compliance, robust quality management systems and data integrity to ensure product safety and efficacy.
Fergal Keenan, managing director of cargo-partner Ireland, says Irish manufacturers have responded with impressive resilience, diversifying suppliers, building stronger relationships with logistics partners and adopting more flexible transport solutions to protect their production schedules: “We see businesses increasingly open to multimodal solutions to strike the right balance between speed and cost.”
Agility is key when it comes to dealing with the unpredictability of global supply chains, says Keenan. “Irish manufacturers need to invest in greater supply chain visibility, embrace digital tools for predictive planning, and work with logistics providers to build in more agility and redundancy across their networks,” he says.
Technological solutions are providing some of the answers; cargo-partner has developed the SPOT visibility and collaboration platform, offering supply-chain transparency by streamlining communication, optimising workflows and providing real-time updates. “In an increasingly volatile environment, having this level of visibility and flexibility is what will separate those who thrive from those who struggle,” says Keenan.
Keogh notes that many pharmaceutical and biopharmaceutical companies are investing in supply-chain visibility and digital tools to better predict and respond to disruptions. Inventory strategies are also evolving, with more emphasis on building buffers for high-risk or long-lead-time materials, rather than relying solely on just-in-time delivery models.
Collaborations, both domestic and international, have also been crucial, she says. “Irish companies are working more closely with partners, regulators and governments to align regulatory processes, streamline approvals for supplier changes, and share best practices.”
The sector has also adopted a series of tactical and strategic measures to strengthen resilience. “One key shift has been the move away from single-source dependencies, particularly for critical raw materials like high-grade chemicals and specialist components,” Keogh notes. “Companies are actively expanding their supplier base, seeking to diversify geographically to reduce exposure to regional disruptions and developing alternative sourcing strategies where possible.”
To manage short-term shocks, manufacturers are taking a risk-based approach to prioritisation. “Products that are critical for patients, especially those with no therapeutic alternatives, are being identified and safeguarded first in the event of supply constraints,” she says. “This ensures continuity of care where the stakes are highest.”
Indeed, in today’s climate, Keogh says, it is no longer a question of if disruptions will occur, but how prepared businesses are to respond. “For countries like Ireland, ensuring regulatory agility, maintaining open trade routes, and investing in resilient supply networks is vital, not just for economic stability, but for global public health.”
For Suretank’s Winters, adaptability is the key word: “We have proactively sourced alternative supplies for critical parts, raw materials, and components. We’ve also diversified our supplier base and transport routes to mitigate risk. This level of responsiveness is essential not only to maintain operational continuity but also to safeguard long-standing partnerships and contractual obligations.”
Without such adaptability, he says, businesses risk compromising their sustainability and long-term viability.
On a broader scale, Winters says Irish manufacturers must focus on reducing bureaucracy and securing reliable supply chains for critical components.
“As market pressures increase, so too will costs particularly in areas affected by scarcity or geopolitical tension. Businesses should prioritise the implementation of operational efficiencies and robust procurement processes. These measures will be key to maintaining competitiveness and resilience in an increasingly unpredictable global landscape.”
