Monday December 5, 2022

Our latest report examines the current state of play in the manufacturing industry and how manufacturers can survive critical challenges

According to our latest report, close to one in five heavy manufacturing businesses in the UK could be at risk of going under without an extension to the government’s Energy Bill Relief scheme.

We conducted a poll with more than 100 senior decision makers within the heavy manufacturing industry, in advance of the Chancellor’s Autumn Statement, resulting in 18% saying they weren’t confident in continuing to trade through the next 12 months without an extension to the scheme, which comes to an end next April.

With more than half (53%) of firms in the sector expecting creditor pressure this year, around a quarter (28%) held similar concerns for the financial health of their supply chains.

Almost all of the businesses we surveyed had utilised the emergency funding during the pandemic, with just a third currently paying loans back on the original terms. Meanwhile, one in 10 are failing to pay back anything at all at a time of rampant inflation and increased operating costs.

Despite the challenges the sector faces, manufacturers can get ahead by proactively reviewing their operations, costs and pricing, whilst staying in close contact with their stakeholders.

Tony Wright, Restructuring Advisory Partner at FRP, said: “I’m confident that the vast majority will make it through this period and will emerge fitter and stronger. I hope this report helps shine a light on some of the most pressing issues for manufacturers.”

The results of the report highlight that despite the sector seeing a number of issues to overcome in the coming months, there are opportunities to be seen and steps manufacturing businesses can take to remain resilient.

 

Click below to read our latest manufacturing sector report.

FRP Advisory – Manufacturing: under the microscope