Talking with customers all over the world over the last few months, the recurrent themes have been: How has the recovery from the pandemic played out for manufacturing and, not surprisingly, what could be in store for 2022?
Here in the UK, manufacturing activity experienced a strong recovery in 2021 as it pulled out of the sharp downturn during the first half of 2020 when the Covid-19 pandemic first struck. Confidence has bounced back following the national vaccination programme and there appears to be more certainty in the UK economic outlook.
INDUSTRY VIEW ON 2021
The Confederation of British Industry’s (CBI) survey reported a challenging start to the year for SME manufacturers, caused by record cost increases, ongoing supply chain disruption and labour shortages. However, despite this, output has remained high and many businesses are looking to up their investment programmes.
FORECAST FOR 2022/23
Several respected reports cited by, international current affairs journal, the Economist indicate that the intense global supply chain stresses will start to ease up this year. But although they are easing they point to expecting some ongoing issues throughout 2022 and into 2023. Mitigating such disruptions is a key reason why we hold stocks so that we can ensure timely delivery. We are working hard to maintain our stock levels so that we can continue to ship from stock. But do not hesitate to contact us to check current lead times.
THE IMPORTANCE OF MADE IN UK
The Manufacturing Technology Centre claims that the UK has become too reliant on manufacturing imports from Asian low-cost countries over the past four years. Currently driving a strategy to future proof UK manufacturing including re-shoring initiatives and providing a specific funding pot for Net Zero manufacturing. We have always manufactured from our HQ in the South of England since 1987 and are very proud of our ‘Made in UK‘ credentials.
NEW FUNDING
Great for manufacturing and also the environment last week, was the announcement that there would be £16.7m of UKRI funding (UK Research and Innovation) to help develop Britain’s power electronics, machines and drives (PEMD) supply chains in order to lead the green electric revolution. The hope is that in building a sovereign supply chain the UK can work towards zero emissions, whist at the same time mitigating against overseas supply chain disruption.
What’s evident is that confidence in manufacturing is up and although we can all expect ongoing challenges in the near and mid-future, it looks like the worst is behind us.
Do not hesitate to get in touch with us for all drive enquiries.
Here’s to a successful 2022.
