FRP - The Manufacturing Agenda

The Manufacturing Agenda

Competing priorities When manufacturers were asked which topics had triggered board-level debate or urgent action over the past 12 months, no single factor dominated. Instead, a broad mix of external and operational challenges competed for management time and attention.

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However, while it seems that external risks and volatilities are dominating board discussions, immediate working capital or cashflow crises surprisingly ranked bottom of the list, suggesting that many boards were focused on managing structural risks and longer term planning rather than responding to short-term financial events. Short-term finance

Sustainability and regulatory requirements were the most cited trigger (26%), with new ESG obligations driving board action. This reflects evolving reporting rules, including incoming Sustainability Reporting Standards, and operational responses across energy use, efficiency, and supply chain management. Sustainability & regulation Geopolitical and trade issues (25%), tariffs, sanctions, and export restrictions, dominated, underscoring the UK’s reliance on the US as its top export market. Supply chain disruption (24%), including lead time delays, supplier failures and transport issues, also featured prominently. These pressures have contributed to a shift towards reshoring and nearshoring. Geopolitics & supply chain

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Financial pressures were another source of debate. Squeezed margins or unplanned cost spikes were flashpoints for 24% of decision makers, while 22% cited the sudden drop or loss of key customers or orders. Financial pressures

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