Against the odds: The future of UK manufacturing
An optimistic view On the up When we published our first report on the manufacturing sector landscape last year, the short-term outlook was challenging – particularly given its proximity to the now infamous ‘mini-Budget’. Many of the factors that were causing concern to manufacturers then are still in play at the time of writing. Interest rates have increased significantly and the cost- of-living crisis has instilled fragility in consumer confidence. At the same time, operating costs – including energy and wages – remain high, while post-Covid and Brexit-related supply chain challenges persist. Accordingly, there is evidence that output volumes are falling and order books are declining in some areas of the market, contributing to a mixed outlook for UK manufacturing.
They are adopting emerging technologies as they take every opportunity to boost productivity and profitability, and are continuing to invest in their people, providing them with the skills that modern manufacturing demands. The sector is also leading the charge towards Net Zero, creating a new age of clean, sustainable manufacturing.
The sector is also leading the charge towards Net Zero, creating a new age of clean, sustainable manufacturing. “
Fresh thinking
In this report, we have gathered the views of a diverse selection of more than 300 of the sector’s senior decision makers with a view of sharing their experiences, provoking conversations and inspiring action. Economic certainty may be hard to come by but history shows that it is often periods like these that work to strengthen resolve and inspire fresh thinking. If you would like to discuss any of the issues raised in this report, please do not hesitate to get in touch.
Improving indicators
Still, many of the gloomiest predictions being made at the end of 2022 have failed to materialise and a number of economic indicators are improving, albeit slowly. The rate of inflation is slowing, economic forecasts are being revised upwards and a more positive outlook on interest rates is emerging. As in last year’s report, manufacturers are displaying impressive resilience while being markedly more optimistic about their future. Crucially, many are now moving onto the front foot in pursuit of growth.
Get in touch
David Hudson Partner Restructuring Advisory London +44 (0)7930 397 708 david.hudson@frpadvisory.com
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