Businesses in the aerospace, electronics and energy sectors all point to recovery with 72 per cent, 59 per cent and 71 per cent of respondents respectively indicating a return to pre-COVID-19 levels of production.
Automotive sector has not bounced back, with 60 per cent of respondents in sector stating that output in their firms has been reduced. Access to skills, supply chain issues and the move to hybrid/remote working were all cited as particular challenges across all areas of manufacturing.
The State of Manufacturing 2023 Report sought to uncover the biggest concerns facing engineers working in UK manufacturing.
In a statement, Scott Fawcett, CEO, Essentra PLC, said: “With this report, we are demonstrating our responsibility as a leader to dig beneath the surface and find out what is really going on behind the numbers, to help inform future decision making.”
The issue of skills was a particular concern, with 74 per cent saying new recruits frequently lack the skills and qualifications needed to succeed in a modern manufacturing environment.
Exactly half of respondents said supply chain pressures have had a significant impact on their business, and 62 per cent expect those issues to remain for anything up to five years. Some 15 per cent even believe they could go on indefinitely.
To mitigate the effects of these challenges, manufacturers are taking a variety of actions from sourcing new suppliers (64 per cent of respondents) to increasing prices (43 per cent) and exploring ways of reducing overheads (just under 30 per cent). Around a quarter of respondents also report using supply chain forecasting models, and even reshoring aspects of production, to anticipate and address supply chain delays.
On a more positive note, most (90 per cent) said their firms have an active technology investment plan and 61 per cent view the drive for increased sustainability as an opportunity, rather than a threat.
“Despite the challenges of COVID-19, manufacturers appear to be bouncing back with production volumes and financial revenues recovering to pre-pandemic levels,” said Fawcett. “It is encouraging to read of the investment many are making in technology and innovation, and in addressing the challenges of a disrupted supply chain. It is also pleasing to see the continued focus on sustainability, making our industry and our planet fit for future generations. It’s something we can be proud of, both professionally and personally.”
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