Report highlights challenges facing metals sector

Nearly a quarter of firms in the UK Metals Council’s State of the Metals Industry in the UK 2023/24 survey admitted to adjusting supply chain strategies or sourcing alternatives, whilst just under a third want enhanced government support to navigate trade barriers and custom procedures following Brexit.

Under a quarter (22 per cent) of manufacturers are also looking for improved energy supply contracts to make prices more affordable, with 31 per cent of businesses saying that they have an effective recruitment strategy in place for filling the labour gaps.

Despite the headwinds, 70 per cent of respondents said they are optimistic or very optimistic about future business prospects. The report will be launched at UK Metals Expo, which runs from September 13-14 at NEC Birmingham.

Rachel Eade MBE, chair of the UK Metals Council, said: “Foundation industries will continue to play a critical role in the way we all live, and this vital sector needs a voice to ensure that the government understands the journey we are on.

“This is why we came up with the State of the Metals Industry in the UK Report, a unique opportunity for us to canvas the views of primes, metal producers and those in the downward supply chain.”

Eade continued: “The issues they are facing span from supply chain disruption because of Brexit to availability of raw materials and how they can mitigate the cost of energy – a key issue when you consider levels of consumption in our industry.

“Skills and the ability to get new people into our sector is also a challenge that is holding many of them back as they look to support the UK’s desire to move towards Net Zero. We’ll be highlighting this to government at the UK Metals Expo next week.”

The UK Metals Council is made up of 12 trade associations from the metals supply chain and represents the interests and views of over 11,000 companies.