At the end of 2022 industry bodies shared their summary of the past year and likely forecasts for the UK manufacturing landscape in 2023. These reports summarise that due to the declines in output, new orders, the increase in production costs and job losses, there is a dark storm looming over British manufacturing.
Forecasts showed that the manufacturing sector shrank by around 4% in 2022 with a possible decrease by 3.2% in the next year 1. Manufacturing accounts for around 10% of the total UK economic output, which is why experts and strategists have suggested developments that could help push growth and get British manufacturing back on track.
Governmental Action
Policy-makers will need to work alongside the industry to map out a long-term plan which includes ministerial actions such as:
- Further support for rising energy costs
- Incentives and tax exemption for manufacturing research and development
- Employment support to balance out job losses
Although most of the suggested procedures will require monetary support, the government could help businesses rebuild themselves from the past 2 years of deterioration. It may take time but with consistency and steady national growth at the forefront, an improved forecast can be achieved.
Operational Improvements
The past 3 years have undoubtedly impacted every business in the manufacturing sector, with the after-effects of Brexit and the Covid-19 pandemic continuing to effect supply chains and logistics. However, through these struggles, manufacturers have proven their resilience and perseverance to keep their business operating.
The emergence of new, digitalised innovations to supply chain operations have improved day-to-day business for manufacturers that have invested in new platforms and software. Also, companies primarily turned to reshoring to increase supply chain strength, which in turn has supported the whole British manufacturing sector.
These positive changes may act as a safety net for businesses when faced with potential economic turmoil.
Pushing Forward
As mentioned, manufacturers are continuing to adapt to environmental and economic changes and new digital developments are enhancing procedures every year.
Without policy changes and cost easing, manufacturers will see a repeat of output falls each year, however persistence and advancement will be a leading factor in making British manufacturing more lucrative.
Sustaining British Business
At Clevedon Fasteners we are committed to British Manufacturing and contributing to the national economy through our supply of cold forged components and fasteners. As members of Made In The Midlands, we contribute to the large community of local manufacturing firms who can promote their business on a regional scale and nurture their reputation among a strong digital platform.
If you are looking for high quality fasteners that will fulfil your performance requirements, then please get in touch with our technical team through the details below: