Recession Fears Ease as Manufacturing Returns to UK | News

Interested in having the resources to do more? Discover how you can spend more time achieving your goals and reaching your full potential with ERA Group.

ERA Group is a network of 1,000+ specialists worldwide. We always have local expertise on your doorstep. ERA’s large network and depth of industry knowledge ensures our consultants deliver Value through Insight to your business.

Whether you would like to set up an initial meeting, gain more valuable insight into your industry or start the cost optimisation process, we can help you achieve your business mission and enable you to spend more time focusing on new initiatives and innovation, helping your business succeed.

The UK manufacturing industry is experiencing a resurgence in its operations during the first quarter of 2023 due to the improvement of both domestic and global markets.

Despite long-term concerns due to the pandemic and the Ukrainian war, recent reports suggest that opportunities across the manufacturing industries could be set to increase. Studies indicate that optimism is finally returning to the manufacturing sector.

Historically, the UK has a strong tradition in manufacturing, and it has been a significant contributor to the country’s economic growth and employment.

However, like many other countries, the UK has faced challenges in recent years due to factors such as global competition, technological changes, and the COVID-19 pandemic.

While there is evident optimism across much of the manufacturing sector, there is also an acknowledgement that more tangible improvements will need to be felt before this hope can be realised.

According to the Society of Motor Manufacturers and Traders (SMMT), Britain’s new car market increased by 26.2% in February, the seventh consecutive month of growth. Battery electric deliveries grew by 18.2%, with all plug-in cars taking almost a quarter market share.

The findings in the Make UK/BDO Q1 Manufacturing Outlook survey show a strong demand in the electronics and mechanical equipment sectors. The category is primarily responsible for driving the notable improvement, with the electronics sector showing an exceptionally strong balance of orders (+64%).

That said, the UK government and industry leaders have been working to support the manufacturing sector and promote its growth.

Initiatives such as the Made Smarter program, which aims to boost the adoption of digital technologies in manufacturing, and the Industrial Strategy Challenge Fund, which funds research and development projects in key sectors, are examples of these efforts.

It’s worth noting that the manufacturing industry is complex and diverse, and its performance can vary depending on the subsector, geographic region, and other factors. Therefore, it’s essential to look at specific data and indicators to get a more nuanced understanding of its trends and prospects.

While there are still concerns both internally and externally, UK manufacturing businesses can take heart from growing optimism across the sector. It appears that now is a great time for manufacturers to start considering how they can promote their long-term growth through effective investment and cost-reduction strategies.

Here at Expense Reduction Analysts, we’re experts at helping businesses streamline their supply chains through effective manufacturing procurement. Our industry experts have years of experience across manufacturing sectors and can help to save you money through the implementation of long-term strategies.

If you’re interested in taking advantage of growing industry optimism and want to unlock capital to invest, why not speak to our team today and see what we could do for you?

Back