Rising costs and growing supply chain pressure
At the start of 2026, hardware prices continue to rise and availability is becoming increasingly constrained. Many public sector organisations are already facing difficult decisions around technology refresh programmes planned for the year ahead.
Industry analysts and market trackers report that global component shortages, particularly in memory and storage, are now having a measurable impact on device pricing. Cost increases of 15–20% are already affecting manufacturers, driven largely by constrained supply of DRAM and NAND components. Forecasts for 2026 indicate that average PC prices are expected to continue rising as these pressures persist.
A key driver is the rapid expansion of AI platforms and large-scale data centres, which are absorbing a growing share of global memory production. This capacity is often prioritised over standard business devices, reducing availability for public sector buyers. As a result, organisations are dealing not only with higher costs, but also with volatile pricing, uncertain delivery timelines, and reduced choice. Some analysts warn that, in periods of heightened volatility, cumulative price increases across components and logistics could approach 40% by year end in certain market segments.
The impact on public sector planning and budgets
For local authorities and other public sector bodies, this uncertainty creates practical challenges. Pricing volatility and constrained availability can disrupt approved budgets, refresh cycles, and planned programmes, increasing both operational risk and pressure on already stretched teams.
While delaying procurement until the next budget cycle may appear cautious, it can expose organisations to higher prices and fewer options. In a market where supply constraints can emerge with little warning, waiting often reduces flexibility rather than preserving it. As a result, more public sector organisations are exploring approaches that allow earlier action while remaining aligned with financial governance, audit requirements, and Medium-Term Financial Strategy planning.
Using flexible finance to retain control
At CHG-MERIDIAN, public sector organisations are being supported through pre-financing and structured leasing models designed to reduce exposure to market volatility. Agreed equipment can be secured at today’s pricing and either held within trusted partner networks or deployed when operationally required, while financial structures are aligned to budget cycles rather than supplier constraints.
In some cases, organisations are choosing to take delivery of new laptops now while structuring leases so that repayments begin in the new tax year, after April 2026. This enables teams to access the technology they need without delay, while finance teams retain control over cash flow and remain aligned with governance and audit requirements.
By securing pricing early, guaranteeing availability for critical programmes, and avoiding upfront capital outlay, these approaches help organisations protect value for money and keep technology initiatives on track. In an increasingly volatile market, early planning combined with flexible finance can provide greater certainty and control throughout 2026 and beyond.
Contact us
Contact our Public Sector team to discuss your upcoming refresh plans and explore options that can help you manage risk, secure availability, and maintain budget control: