Energy reliability the top concern for supply chain operators

Energy reliability is now the top concern for supply chain businesses, according to the 2026 Supply Chain Outlook report by Prologis.

Energy reliability is now the top concern for supply chain businesses, according to the 2026 Supply Chain Outlook report by Prologis.

According to the report, which surveyed over 1,800 senior supply chain executives in the United States, Europe, Asia, and Mexico, nine in ten companies experienced some degree of energy disruption in the past year, from price volatility to weather-driven outages.

Some seven in ten executives said that they fear power outages more than any other form of disruption, however fewer than a third of businesses state that they have advanced backup systems in place.

In terms of future planning, 90% of respondents said that they would pay a premium for sites with reliable energy infrastructure.

‘The new fault line’

“Energy is the new fault line in global supply chains. A majority of companies faced energy disruptions last year, and most expect their power needs to surge in the years ahead,” commented Susan Uthayakumar, chief energy and sustainability officer at Prologis.

“The companies that solve for energy resilience will be the ones that stay ahead.”

The role of AI

Other findings from the report, which was conducted alongside The Harris Poll, include that artificial intelligence is already well-embedded into supply chains, with 70% of firms reporting ‘advanced or transformational AI adoption’, and AI seen as essential to quality control and risk identification.

Elsewhere, supply chains are also becoming more regionalised after decades of globalisation, with six in ten executives stating that they anticipate more localised supply chains by 2030, and more than three quarters having already implemented – or are actively developing – regional networks.

Energy reliability (40%) now ranks higher than labour costs (36%) as the primary factor influencing the location of operations.

“This report confirms what our customers are navigating every day,” said Hamid R. Moghadam, co-founder and CEO of Prologis. “Supply chains are going through the biggest reset in a generation, and it comes down to three things: energy reliability, AI and location. The new priority is resilience — building networks that can adapt and endure.” Read more here.

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