Manufacturing Outlook Report
UK manufacturers hit record levels of output and orders as growth surges in response to UK and overseas economies continuing to open up
Following a series of sharp declines in output and orders last year, manufacturers have since experienced a swift bounce back as new work returned to unparalleled levels. The pandemic is quickly becoming a distant memory with many UK manufacturers focussed on the future; investing in expanding capacity, innovating new products and upskilling their workforce. This is the key finding of the Manufacturing Outlook report.
Both output and orders expanded at unexpected rates as manufacturers were swamped with customers demanding their products. Despite facing significant new barriers to trade since the start of the year, orders from overseas customers have also been recovering quarter on quarter.
Intention to increase investment in capital is now at the highest level ever, raising hopes for significant technological progress across the industry. Many of these investment plans are influenced by the lessons learned from the pandemic, with manufacturers focussed on building resilience and becoming more environmentally sustainable.
This quarter we are delighted to include a new themed element to our Manufacturing Outlook report that focuses on the Environmental, Social and Governance (ESG) agenda. We take a look at how manufacturers are approaching ESG. Manufacturers are increasingly engaging in the idea of building a green economy with a focus on green technologies, green skills and developing green practices.
Despite the remarkable improvements this quarter, manufacturers face a plethora of challenges both new and old. From supply chain shortages of key raw materials, rising costs, the end of the CJRS, labour shortages to the impact of the recent National Insurance increase – all of which have the potential to impact manufacturers plans negatively.
Download our Q3 report for detailed UK manufacturing insights and to find out how your approach to ESG compares with manufacturers across the UK.
Download Q3 Report
If you would like to discuss any of the topics raised in this report, please do not hesitate to contact Richard Austin or your usual BDO Manufacturing partner.
Image credit: © Rolls-Royce PLC.