FRP - The Manufacturing Agenda

The Manufacturing Agenda

Manufacturers are operating in a climate of disruption, where boards must act quickly to safeguard resilience. Our research highlights three key triggers for urgent intervention: new regulatory and ESG requirements, geopolitical and trade developments, and persistent supply chain disruption. Decisive boards, diverse outcomes

30%

29%

28%

Chose to exit all of part of their business

Undertook a cost reduction review

Appointed advisers, pursued leadership

changes or completed M&A Persistent issues - lead time volatility, supplier failures, and transport challenges - dominated boardroom discussions. 28% appointed advisers, pursued leadership changes, or completed M&A to gain specialist skills, resources, or scale. Nearly eight in 10 board members (79%) said their latest reactive decision improved trading prospects.

Boards faced rising demands from regulators and stakeholders on sustainability, compliance, and environmental performance. Three in 10 manufacturers (30%) chose to exit all or part of their business, reflecting a belief that a new owner could be better placed to support the next phase of growth, or the opportunity to close business streams with low margins or low growth potential in favour of areas with better performance prospects.

Global trade tensions, shifting tariffs, and political uncertainty created significant challenges for manufacturers. 29% completed a cost reduction review, which can be an effective tactic to enhance margins, free up working capital and improve operational flexibility. Steps like this have helped businesses adapt. quickly to external shocks and maintain competitiveness.

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