SPECIAL REPORT
“ The biggest issues to dominate UK manufacturers ’ agenda in recent months are supply chain-related which , in turn , are leading to rising cost pressures and increased selling prices .”
Following a series of sharp declines in output and orders last year , as the pandemic raged , UK manufacturers have since indicated a swift bounce-back as new work returned to unparalleled levels for many across the sector . Today , many UK manufacturers are focused on the future , by investing in expanding capacity , innovating with new products and upskilling their workforce . The manufacturing industry remains a significant contributor to UK Gross Domestic Product ( GDP ). It directly accounts for 9 % of GDP and supports more than 2.5 million jobs . In the wider context , factoring in the spending power of the people employed directly and indirectly ( those in supply chains ) in manufacturing , the figure rises to 23 % and seven million jobs , according to the UK ’ s Manufacturing Technologies Association .
However , there are several risks which could hinder the sector ’ s growth such as the emergence of a new COVID variant / new infection wave , supply chain disruption and labour shortages impacting manufacturer ’ s plans . Brexit has also created or exacerbated several of the challenges faced by UK
MADE IN THE UK
We examine how UK manufacturing has performed as it navigates COVID-19 , Brexit , supply chain and logistics challenges as well as labour shortages .
By
Sara Waddington , Editor , ISMR
manufacturers , affecting issues such as EU imports / exports , investment and logistics / labour flows , as manufacturers attempt to navigate new waters as a result of trade restrictions with Europe .
UK manufacturing outlook
The latest Make UK / BDO Manufacturing Outlook Q3 indicates that manufacturers outdid their own expectations last quarter . Make UK represents member companies – from small businesses to multinationals – across every industrial sector .
“ Both output and orders have expanded at unexpected rates as manufacturers were
Manufacturers are focused on building resilience and becoming more environmentally sustainable swamped with customers demanding their products . However , despite facing significant new barriers to trade since the start of the year , orders from overseas customers have also been recovering quarter-on-quarter , suggesting that firms are getting back to business-asusual ,” commented the Outlook .
However , it also included a cautionary comment on Brexit .
“ There is no doubt that manufacturers who trade regularly with the European Union ( EU ) would have achieved a greater return from the pandemic boom if not for the UK ’ s exit from the bloc , leaving many to wonder what could have been if not for the double whammy faced by businesses here . On the other hand , businesses that specialise in supplying goods for the UK market have capitalised on new opportunities to position themselves as a viable alternative to EU suppliers , leading to strong growth in the domestic market too ,” it said .
Alongside the growth in output and orders , has come a plethora of challenges in various forms . The main one is supply-chain related , namely shortages of key metals , plastics and
44 | sheetmetalplus . com | ISMR October 2021