The UK's manufacturing sector showcased its resilience and potential for growth at the MACH Show 2024, the nation's foremost exhibition for engineering and manufacturing. Jason Pitt, CEO of Made in Group, and Johnathan Dudley of Crowe UK, shared profound insights gleaned from their respective reports, shedding light on the current state and future trajectory of the industry.
In a powerful address, Jason Pitt highlighted the urgent need for strategic foresight in understanding and safeguarding the supply chain. "The UK needs to appoint an industry expert who understands the supply chain," emphasised Pitt. "We can see that Russia is taking actions in and around raw material production in Ukraine and Africa, and we in the UK are being slow to react or even understand the strategic risks."
Drawing inspiration from ancient wisdom, Pitt quoted Sun Tzu, saying, "In the Art of War, Sun Tzu was quoted as saying do what is hard whilst it is easy." This aptly underscores the imperative for proactive measures in fortifying the nation's industrial resilience.
Continuing his discourse, Pitt stressed the symbiotic relationship between national security and economic success. "National security and economic success are not different issues," he remarked. "If we invest in security, we will benefit from innovation, and our economy will pivot as it must towards manufacturing."
Anecdotal, it can be noted that Russia is posting high growth rates economically in part as a result of their ‘War Economy’ . This economic pivot is seeing the Russian economy not only overcome sanctions but be in a state of readiness for future conflict with the West.
Jason commented that it has been reported that the Russian military spend is now 10% of GDP and could be higher, which represents at least 40% of total public spending in Russia.
Amidst the backdrop of geopolitical uncertainties and economic challenges, the Made in Group's Manufacturing Growth Survey provided a beacon of optimism. The survey revealed that despite facing multifaceted challenges, including market volatility and supply chain disruptions, UK manufacturers exhibited bullish confidence, with three in four anticipating substantial growth over the next 12 months.
Industrial businesses across key regions like the Midlands and Yorkshire demonstrated remarkable resilience, with 74% experiencing overall growth. However, the report also highlighted the need for strategic agility, as the number of firms experiencing contraction rose from 4% to 12%.
Looking ahead, a blend of optimism and caution characterises the outlook of industrial directors. An overwhelming 92% of companies anticipate expansion, with over a third eyeing growth rates of 20% or more. While the appetite for reshoring has diminished, there's a concerted effort towards establishing resilient local supply chains and strategic outsourcing.
To download the report visit www.madeingroup.com/surveys
Johnathan Dudley introduces the Manufacturing Outlook Report
Johnathan also shared his thoughts on business growth. With over three decades of experience in audit, tax, and business improvement, Jonathan grew up in a family manufacturing business and his passion was fuelled by his desire to help solve accounting issues he had seen in his fathers business. Johnathan is National head of SME Corporates and Manufacturing Business. Complementing this narrative, the Manufacturing Outlook report, in collaboration with CBM, provided insights into the financial pulse of the manufacturing sector. “Despite facing headwinds arising from high inflation and supply chain disruptions, manufacturers remained buoyant about sector growth. Embracing digitization, AI, and automation, companies are poised to build resilience and drive growth amidst adversity.”
However, financing emerges as a significant hurdle impeding investment plans, with lending becoming increasingly difficult and expensive to obtain. The Winter Survey 2024 seeks to understand manufacturers' strategies and expectations regarding investment in research and development, headcount, and overall growth amidst ongoing uncertainty.
As the manufacturing sector continues to navigate a complex landscape fraught with uncertainties, the insights gleaned from these reports serve as guiding beacons, illuminating pathways towards sustained growth and innovation. With a steadfast commitment to resilience, adaptability, and strategic foresight, the UK's manufacturing industry stands poised to surmount challenges and emerge stronger than ever before.