Study finds 73% of UK manufacturers predict an increase in sales turnover by Autumn

73 per cent of UK manufacturers predict an increase in sales turnover by Autumn 2023, despite economic challenges, according to The South West Manufacturing Advisory Service’s (SWMAS) Q4 2022 Manufacturing Barometer.
Michael Crossland
By Michael Crossland
Published 28th May 2023, 11:45 BST

Whilst firms reported that supply chain price changes (89 per cent) and energy costs (82 per cent) are causing the greatest negative impacts for manufacturing businesses, the number of firms struggling with inflation has reduced by 4 per cent compared to last quarter's findings, indicating early signs of relief.

Nick Golding, managing director of SWMAS, said: “The increased optimism around future sales is positive. However, with firms continuing to invest in inventory to buffer challenges with supply chains, and a third of respondents indicating customer orders are being delayed or starting to be cancelled, companies need support to ensure that planned future investments are not constrained as a result of cash being tied up in inventory which is then affected by order cancellations or delays.”

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Despite ongoing challenges, the manufacturing industry’s investment plans are optimistic. More than half (52 per cent) of respondents are experiencing increased levels of trade compared to their pre-covid position.