Manufacturers predict upturn in sales despite headwinds

These are some of the findings from the latest UK Manufacturing Barometer by SWMAS (The South West Manufacturing Advisory Service) in which manufacturing CEOs, directors and managers reveal their future growth and investment priorities.

Whilst firms reported that supply chain price changes (89 per cent) and energy costs (82 per cent) are causing the greatest negative impacts for manufacturing businesses, the number of firms struggling with inflation has reduced by four per cent compared to last quarter's findings.

Manufacturers are taking action to address rising costs by implementing process efficiency improvements (66 per cent) and considering the use of different suppliers (61 per cent). Another 17 per cent of manufacturers plan to bring production back in-house due to rising supply chain costs.

Despite ongoing challenges, the manufacturing industry’s investment plans are optimistic. In total, 52 per cent of respondents are experiencing increased levels of trade compared to their pre-covid position. Furthermore, 44 per cent of manufacturing organisations have experienced an increase in sales turnover in the past six months, with 74 per cent predicting a further increase in sales turnover over the next six months.