The inaugural Manufacturing Growth Report by Made in Group paints a largely positive outlook for the UK manufacturing sector, showcasing resilience and strategic planning among industrial businesses across the Midlands, Yorkshire, and beyond. Despite facing challenges on multiple fronts, including market volatility and supply chain disruptions, manufacturers have demonstrated remarkable growth over the past 12 months, underscoring the sector’s renowned ingenuity and determination.
Key findings from the report indicate that three in four industrial businesses experienced overall growth, with more than half witnessing growth rates of 10% or higher. However, there has been a notable increase in the number of firms experiencing contraction, highlighting the need for strategic agility in navigating uncertainties.
Looking ahead, directors express a mix of bullish optimism and caution for the coming year, with 92% of companies forecasting expansion and over a third anticipating growth of 20% or more. While the appetite for reshoring appears to have diminished, there remains a strong interest in establishing local supply chains and strategic outsourcing.
The report also sheds light on the importance of effective risk management and succession planning in ensuring the long-term success of manufacturing businesses. While two in three industrial directors prioritize regular formal assessments for risk management, there is concern regarding the number of businesses adopting an ad-hoc approach, leaving them vulnerable to unforeseen challenges.
Succession planning emerges as a critical area of focus, particularly given demographic shifts and global complexities. While less than a third of businesses claim well-established practices, the majority have identified successors, albeit largely informally.
Jason Pitt, CEO of Made in Group, emphasized the resilience of regional manufacturers and the organization’s commitment to championing the sector. He highlighted the importance of effective risk management and succession planning in navigating uncertainties and driving growth and innovation in the manufacturing landscape.
As the manufacturing sector continues to evolve and adapt to changing dynamics, strategic planning and proactive measures will be essential in sustaining growth and ensuring the longevity of businesses. Through collaboration and shared best practices, manufacturers can overcome obstacles and seize opportunities, contributing to the resilience and prosperity of the UK economy.