Manufacturing Looks Good For Rest Of The Year

A survey released today (Monday 17 June) by Make UK reveals that the country’s largest manufacturers are expecting orders and output to increase dramatically in the second half of 2024, despite some reporting a shortage of skilled workers threatening their ability to continue trading.  Make UK is the trade body for manufacturing and surely came up with its name after having looked at a tin of Ronseal, and their survey covered 320 companies. 

The trade body is expecting manufacturing to grow by 1.2% in 2024, beating GDP growth of 0.9% for the year.  The survey reported that business confidence has risen to match its highest level in the last ten years, following a post pandemic drop and price disruption caused by Russia’s invasion of Ukraine.

But optimism in the sector is dampened by a shortage of skilled workers that must be at the heart of the next government’s plans for industry, companies said.  The scramble to attract and retain talent also shows no signs of abating, with recruitment intentions increasing from +8% to +26% as companies take on staff to meet the expected increase in demand and better economic outlook.

The percentage of manufacturing businesses seeing a busier pipeline and order book has doubled in the past three months, Make UK reported. Growth has been powered by exports, as export orders (+10%) exceeded UK orders (+2%) with strong demand from the US leading the way.  

The survey also asked companies to list their top three priorities for the next Government (whatever colour rose they wear), with more than two thirds of companies (69.1%) stating the delivery of an industrial strategy as the top priority.  The measures proposed by Labour and the Conservatives in their election manifestos were only part-solutions, Make UK said.

James Brougham, a senior economist at Make UK, said: “At long last, manufacturers can see concrete signs of growth and a much better economic outlook ahead … The next government must capitalise on this scenario by delivering a modern, long-term industrial strategy which goes beyond the 2030s and has cross-government support. This must be supported by a revolution in skills, a shortage of which is the biggest factor affecting not just companies’ growth prospects but, in many cases, their ability to maintain daily operations and fulfil contracts.”