Resources worry manufacturers

The cost of raw materials is going to be the biggest constraint on UK manufacturing according to the Grant Thornton International Business Report on Manufacturing.

The annual report, which surveys manufacturing business owners and senior managers in 32 countries, revealed that 47 per cent of respondents thought the cost of raw materials would have the biggest impact on their business. Staff costs at 23 per cent and energy costs at 18 per cent were the next biggest factors.

In the UK, 38 per cent thought raw materials were the main factor affecting costs followed by staff and energy costs at 28 and 23 per cent respectively.

‘Supply chain management is now top of the agenda, with UK manufacturers exploring far more options to secure a cost effective and reliable flow of raw materials for their operations.’ said Bob Hale, head of manufacturing at Great Thornton.