Despite a last-minute Trade and Cooperation agreement being met between the UK and the EU before Christmas, the fallout of increased administration, supply chain disruption and new cross border tax measures, combined with Lockdown 3.0, has acutely hit the manufacturing industry. This shows in the latest CIPS Manufacturing PMI statistics which fell from a three year high of 57.5 to 54.1.
Increased administrative demands relating to paperwork, border controls and the effects of port disruption are proving problematic to the industry and this can be seen through a lengthening of supplier lead times within the latest survey results.
Although concerning, a dip set against this backdrop is understandable; it is now about how manufacturers respond to these challenges. Ironing out stock availability problems, reviewing supply chains and investing in technology to improve productivity will be key to bouncing back in 2021.
To discuss this further, please contact Mike Thornton.