Energy firms treat supply chain disruption as standard risk

New research commissioned by Supply Technologies says 83% of energy-industry decision-makers now face supply chain disruption as a routine part of business, with more than half saying downtime can cost up to $250,000 an hour. The findings show procurement teams across the U.S. and Europe are shifting toward resilience, visibility and strategic sourcing as critical infrastructure operators brace for ongoing volatility.

Why it matters: - Energy companies are treating supply chain disruption as an ongoing operational risk, not a one-off event. - The shift matters because more than half of surveyed leaders say a single hour of downtime now costs between $10,000 and $250,000. - Procurement priorities are changing across critical infrastructure as firms try to protect production, continuity and long-term value.

What happened: - Supply Technologies commissioned new global research on supply chain conditions across the energy sector. - The survey covered senior procurement, engineering and operations decision-makers in the U.S. and Europe. - 83% of respondents said they experience supply chain disruption frequently or occasionally. - 58% said supply chain risk is higher now than it was two years ago.

The details: - Only 16% of respondents said their procurement strategy still focuses primarily on securing the lowest-cost supplier. - Most respondents now prioritize a balance of cost, reliability, operational continuity and long-term strategic partnerships. - Cost inflation ranked as the top operational challenge, cited by 56% of respondents. - Rapid growth in AI computing and data center expansion were each cited by 45% of industry leaders as drivers reshaping supply chain strategy. - Organizations are leaning more on strategic sourcing, supplier consolidation and global procurement expertise to offset inflation while preserving quality and supply continuity. - Supply Technologies says its Total Supply Management™ approach covers every stage of the lifecycle of assembly components to simplify global supply chains and reduce procurement risk.

Between the lines: - The findings suggest resilience is replacing price as the main procurement lens for many energy-sector buyers. - Brian Norris, president of Supply Technologies, said organizations are now designing operations around the expectation that disruption will continue. - Norris also said resilience depends less on carrying more inventory and more on flexible supply chains, dual sourcing, real-time visibility and engineering support. - The research points to a broader move toward integrated supply chain management that combines engineering support, sourcing, inventory management and supplier consolidation.

What's next: - Supply Technologies is expanding its North American Distribution Center in Dayton, Ohio. - The company says the investment is intended to strengthen inventory availability, logistics performance and customer resilience across North America. - Supply Technologies is using the research as the basis for a new eBook, The New Energy Supply Chain Reality: From Disruption to Operational Confidence, which examines changing procurement priorities and long-term strategy. - The eBook also looks at how automation, digitalization, engineering expertise and supply chain partnerships can help organizations prepare for future disruption.

The bottom line: - Energy companies are redesigning supply chains around resilience and operational confidence because disruption is now embedded in day-to-day business.