Exactly one year on from the publication of Manufacturing Outlook’s worst results in the survey’s history, the mood music has changed dramatically.
In what has recently been a dejected pattern of quarters for the industry, manufacturers are now finally able to look to the future with earnest confidence. The industry is certainly not without its challenges, both ongoing and new, but the sector has now demonstrated that it can generate growth despite the still perilous circumstance.
The first of these antagonising musketeers comes in the form of the novel Trade Cooperation Agreement (TCA) between the UK and the EU. The onus of new protocols and paperwork wreaked havoc for British exporters in the first quarter of the year, reflected in the 40% drop in exports to the EU in January. Since then, businesses have overcome many of the hurdles imposed on them by this new arrangement, with the Make UK report detailing significant export improvements compared to the start of the year.
The second dampener to the industry’s recovery is the ongoing uncertainty generated by unpredictable COVID-19 regulations both here and abroad. While the UK has come leaps and bounds in recent months in terms of the economy reopening, many events critical to the prosperity of UK manufacturing, such as trade shows, struggle to go ahead.
The third, and perhaps the most prolific of challenges facing the sector lies in supply-chain disruptions. As the international business community enjoys a sudden spike in demand as the economy has sped up faster than expected, so too the strain on these already delicate supply-chains increases. Of course, just prior to this demand spike supply-chains were already significantly stressed owing to COVID-19 related pressures, but now with demand outstripping supply, or rather, the ability to supply in many cases, UK manufacturers are finding that they cannot affordably source inputs for their product, or cannot source inputs at any rate. Supplier delivery lead times are floating at an all-time high, container shipping prices are ballooning, and core inputs are seeing waning availability. However, despite these obstacles, the manufacturing sector has set off the starting blocks of recovery. The trajectory of which is encouraging, with performance outpacing expectations for the first half of the year.
Make UK has doubled its growth forecast for this year to almost 8%, faster than the economy overall. Confidence within the sector is soaring, fuelled by orders and demand across the industry, which has been long-missed since the start of the pandemic. Industrial Clutch Parts supports the Manufacturing Industry with a range of key products and spare parts. The future is looking bright and ICP plan to be at the heart of this resurgence.
For more information on how we support the industry contact our technical sales team sales@industrialclutch.com www.industrialclutch.com
