Current Issues

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

UK manufacturing sees continued growth

10-Jan-2018
David Johnson (pictured)
Director, Halo Financial
UK manufacturing sees continued growth
After record highs of 58.2 for November’s Manufacturing Purchasing Managers’ Index (PMI), December saw slightly lower rates of growth at 56.3, yet still ended the year on a high, with solid increases across new business, output and employment in the sector. The survey results have produced an index reading above the all-important growth figure of 50.0 for almost a year and a half, with the average result of 57.0 representing the best results for the British manufacturing sector for four years.

New order growth and product development has led to an increase in production and employment for the sector, with output growing in the investment goods and intermediate sectors once again for December.

There has been strong growth in new UK manufacturing exports, in particular to the USA, Europe, the Middle East and China.

David Johnson, founding director of currency specialists, Halo Financial, observed, “There has been a welcome easing of cost increases in December, which is a positive sign for the industry, as import costs fell to the lowest in four months. Inflationary pressures remain, however, as the cost of raw materials continues to rise; forcing suppliers to put up prices.

“The Sterling exchange rate has also contributed to rising cost pressures, although a relatively weak Pound has supported UK exports throughout 2017. We hope that the various cost pressures across the supply chain will ease further in 2018, as UK manufacturers continue to evolve and expand operations. The manufacturing sector is optimistic for the coming year, which provides some welcome positivity in times of political and economic uncertainty.”

Atul Kariya, manufacturing sector head at accountancy and business advisory firm, MHA MacIntyre Hudson, said, “It’s reassuring to see continued growth for manufacturing in the UK, as a steady stream of new orders and exports flow through. It is also encouraging to see the cost pressures on the sector slowing somewhat, as this has been a key concern over the past year. Beating inflationary and supply chain pressures to continue to produce strong results has improved business confidence for UK manufacturers and this has been reflected in growing employment and product development. Once again, these results show the resilience of British industry.”

Laurence Gavin, partner at law firm, Irwin Mitchell, commented, “December was another solid month for the sector and it was particularly pleasing to see employment levels increase. Manufacturers need to build on this into 2018 and despite the on-going political uncertainty, many will be looking for a strong start supported by continued export growth.”

The supply chain lessons of the modern grocer
2 days ago
Time to mitigate the risk of a ‘no-deal’ Brexit?
4 days ago
App Insights: How can artificial intelligence innovate supply chain management?
2 weeks ago
Managing Technological Change Without any Supply Chain Disruption
2 weeks ago
Moody’s Blues for House of Fraser; but Website Failings are Just as Damaging
2 weeks ago
Artificial Intelligence: What’s Now And Next In IoT-driven Supply Chain Innovation
2 weeks ago
Indiana Jones and the supply chain bullwhip effect
2 weeks ago
How Enterprise Labeling Helps You Conquer Regulatory Challenges
2 weeks ago
3 Tips for Empowering Millennial Warehouse Workers
3 weeks ago
More robots means easier delivery - but what about the infrastructure?
3 weeks ago
Safety in the warehouse: Five key risk areas for 360-degree protection
3 weeks ago
Automotive resilience, not just airbags and crash tests, but IT too
3 weeks ago
New High Street panel is facing a race against a terminal diagnosis
3 weeks ago
Delivering the supply chain revolution
4 weeks ago
A market of one: the potential of the personalized supply chain
1 month ago
5 EIS rules you are probably not aware of
1 month ago
TMS: an enterprise priority
1 month ago
Labeling Solutions for Global Expansion
1 month ago
Prime Day will be a $1.6bn loss-leader creating millions more Prime members, says e-commerce expert
1 month ago
Say what? The new possibilities of voice and machine driven retail
1 month ago
‘Peak faith’ in the cloud only 12-18 months away with slump to follow, warns 6point6 Cloud Gateway
1 month ago
As you were for UK manufacturing sector, but new business growth at three month high
1 month ago
Back to IoT basics: Automating outcomes to improve customer experience
1 month ago
Investigation of the "Fast Fashion" impact
1 month ago
Redefining Rental for Materials Handling Equipment
1 month ago
With the Intelligent Enterprise, SAP Creates “A Completely Different Kind of Flexibility”
1 month ago
The supply chain is only as strong as its weakest link
1 month ago
How to Streamline Labeling in the Pharma Space
1 month ago
‘A revolution happened in the way we buy services last week – and no one has noticed!’
1 month ago
Hot Topics at GS1 Connect? Labeling, Blockchain and More
1 month ago
Retailers must Embrace Change
1 month ago
Labeling Solutions That Bridge Islands of Data
2 months ago
My Journey to the World’s Most Important Gathering of Supply Chain Leaders
2 months ago
Workforce of the Future
2 months ago
Securing your supply chain against political uncertainty
2 months ago
On-demand warehousing could help retailers score big this summer
2 months ago
Half of organisations set for major procurement and supply chain AI investment within two years
2 months ago
Brexit, the weather & online shopping: How Britain’s favourite conversations are shaping supply chains
2 months ago
The Road to Regulatory Compliance for Your Supply Chain Labeling
2 months ago
The War on Packaging
2 months ago
Five data dramas that keep your CIO awake at night
2 months ago
As sales fall new report finds many department stores’ websites suffer from clunky integration and poor delive
2 months ago
Got Your Surfboards Ready to Master the Wave of Digitalization?
2 months ago
TrustArc to Offer IAPP Privacy Core® GDPR Training to Address Compliance Requirements
2 months ago
The Market has never been Stronger for Horizontal and Vertical API Platforms
2 months ago
Selecting the best Transport Management System - One of the most important logistics decisions you’ll make
3 months ago
“Digital Transformation” and Supply Chain Planning
3 months ago
Coolest Advice for Making Blockbuster IoT Devices?
3 months ago
The Fall of ‘Made in China’
3 months ago