The founder of British menswear retailer Dobell has warned that manufacturing, freight and delivery costs have become a permanent challenge for SME businesses operating internationally.
In the past year, this has meant an average increase of 2% to unit cost, which the business says they cannot pass on to customers in order to remain competitive.
Dobell designs its menswear collections in Britain and works with manufacturing partners in China to produce its suits and accessories. The business plans its collections almost a year in advance while managing changing shipping conditions, exchange rates, transportation costs and customer demand.
Mike Dobell, founder of Dobell, said businesses could no longer treat disruption as a one-off event or assume that international trading conditions would quickly return to normal.
He said: “Businesses once approached supply-chain disruption as something temporary that had to be managed until conditions settled down. The reality today is that instability has become part of the normal cost and complexity of trading internationally. It’s unrealistic for business owners to think the supply chain will settle anytime soon.
“When products are designed in Britain and manufactured overseas, decisions must be made many months before they reach customers. The smallest change in shipping routes, transportation costs, exchange rates or delivery times can create huge consequences throughout the business.
“This is especially challenging for SMEs, which compete in the same global market as much larger companies but often have fewer resources available and less purchasing power than bigger retailers. At the same time, customers understandably continue to expect high-quality products and the same delivery timings.”
Figures released this month from the Office for National Statistics show that 28% of businesses with at least 10 employees are concerned about international conflict affecting their supply chains over the next year, while 21% are concerned about shipping disruption.
Among businesses concerned about supply-chain factors, 53% expect the cost of sourcing materials to increase and 46% anticipate higher transportation costs.
The latest ONS figures show that supply-chain concerns have increased considerably over the past year. The proportion of businesses concerned about international conflict was 17 percentage points higher than in September 2025, while concern about shipping disruption had risen by 12 percentage points.
Dobell believes greater transparency is also needed around the role of international manufacturing. Although its products are designed in Britain, manufacturing takes place in China and involves specialist machinery, garment construction, washing tests and quality-control procedures before the finished products are transported to the UK.
Mike continued: “There can be a tendency to view overseas manufacturing purely through the lens of cost, but that overlooks the skills, technology and quality controls involved.
We work closely with our suppliers, including twice yearly trips to their factories and full vetting before we engage with a manufacturer. The relationships we have with our current suppliers are longstanding relationships built over 20 years.
“China offers considerable manufacturing expertise and infrastructure. What matters is that brands understand where and how their products are made, maintain the appropriate standards and communicate honestly with customers about the process.
“Businesses cannot prevent every international disruption, but the Government can provide greater stability at home. When so many external costs remain outside an SME’s control, clarity around taxation, employment costs and international trade becomes even more important.”
