Energy bills a business threat for 60 per cent of manufacturers

Nearly half (42 per cent) of those surveyed said their electricity bills have increased by over 100 per cent in the past 12 months, and 53 per cent expect the same in the coming year.

According to Make UK, businesses are facing a ‘stark choice’ of cutting production or closing down if help is not provided. 12 per cent of manufacturers have already made job cuts as a direct result of increased energy bills, but admitted that more drastic action such as full shutdowns and wider redundancies will be needed if the expected price hikes of over 50 per cent materialise in the next year.

The impact is being felt across manufacturers of all sectors and sizes, Make UK added. Companies have attempted to mitigate against this with 58 per cent already adjusting business practices to reduce energy consumption by insulating buildings and installing better performing heat systems.

Over half of the manufacturers said they have already priced increases into their final product. 13 per cent are now reducing production for short periods or avoiding production altogether during peak energy price periods, with seven per cent reducing production for longer periods in the day.