With just days remaining in 2022, it’s inevitable that we might start looking back over our last 12 months of trading & UK manufacturing, and so too, looking ahead at the year to come.
For many, the idea that Covid seemed to be behind us, gave a sense of positivity and optimism as we awoke to 2023.
At the same time, we were coming to terms with the landscape post-Brexit, and it certainly seemed that there was reason to feel buoyant that the wheels of industry were continuing to turn at pace.
Add to that the existence of all-time-high China shipping rates, and there was a warm feeling that prospects should be good for UK manufacture.
And then came the rumours of Russia and a likely invasion.
Within weeks of the new year unfolding, the angst about potential impact on energy prices began to be felt.
As if that backdrop to make for a vulnerable time for industry and business in general, the subsequent months saw chapter after chapter of a political soap opera.
Three Prime Ministers had their place in Downing Street within just a few months, while a botched financial package and the resulting instability ensured there was a certain fall in confidence for UK manufacturing.
UK Manufacturing
If UK manufacturing didn’t have enough to worry about, namely in seeking to compete with low-cost countries, now our energy costs would cripple us.
At the same time, China shipping costs were coming down again, meaning anyone that had thoughts about bringing work back to the UK now really had to think about it, as costs would reduce margins or make sure that products would no longer be commercially viable.
So that’s the ‘rear-view mirror analysis’, but where exactly does that leave UK manufacturing now?
Can we be more hopeful for 2023?
We have to be smart and continue improving productivity, customer service, quality and relationships to be able to offer more than low cost countries.
It really isn’t all about price, so trying to reduce margins or buy work just to keep busy, is a very dangerous game right now.
China has seen some civil unrest recently, as well as the Taiwan situation. This is a real risk to supply chains.
The UK can offer more stable (even if a little more expensive) supply chains, which in turn offer high quality products and can react quickly.
As for 2023? It will no doubt be another year of uncertainty.
Unfortunately, we will see more great UK manufacturing companies fall down as a result of recent events, but, despite this tough recent period, there is a future.
We just need to keep shouting about the great manufacturing industry we have and purchasing decision makers will listen.
Local and National manufacturing groups which bring people together, are making a big difference.
At Roland, we are part of Suffolk Chamber of Commerce, NAAME and Make UK.
The contact and relationships we have formed through going to networking events have proved successful.
This has not only proved beneficial in terms of direct work, but when a customer mentions they are looking for services we do not offer, we are able to say “have you contact ‘Fred’ as they do this just down the road”.
Collaboration and embracing partnerships has always been important in business, and we believe it’s even more relevant now.
We must all play to our strengths, uniting where we can, to make the best momentum from the landscape which has been created in recent times.
The UK was once a world leader in manufacturing….. and, I for one, am sure this will be the case again.
Here’s to 2023.
