UK manufacturing grows – but so do costs
UK manufacturing is in the news and for the first time in a long time, it seems to be for a good reason. While it is very heartening to see positive stories about the UK’s manufacturing sector, it is important not to become complacent, as there are several risks that may threaten the excellent progress made to date.
First, the good news
The most recent Purchasing Managers Index has recorded the sector’s highest growth since May 2022, with profits, production and staffing levels all increasing and showing good signs of stability.
The risks
The war in Iran threatens to disrupt this progress as transiting through the Strait of Hormuz is becoming more challenging and route changes often trigger significant cost increases along with the increased risk of stock losses.
Further to this, ongoing global political tensions and the introduction of steep tariffs means that while importing raw materials is proving problematic and costly, so too is exporting manufactured goods.
The solution is multifaceted
In the short term, manufacturing businesses must try to secure as much stock of key materials as is possible to enable them to continue production at the current rates. Further to this, local supply chains should be investigated to avoid the need for costly imports.
Companies such as https://orseal.com have a vast valve stock and can deliver customised solutions and bespoke valve packages, allowing manufacturing businesses to satisfy demand, reduce uncertainty and in many cases, constrain costs.
Local sourcing not only encourages a circular economy but gives businesses control over their destinies.
