According to a new report from specialist business advisory firm FRP, 92% of the 300 manufacturers surveyed express confidence in their capacity to navigate the next 12 months successfully. Moreover, they maintain a strong belief in the resilience of their supply chains, with 88% anticipating the continued success of their suppliers in the forthcoming year.
With the easing of inflation, a noteworthy 87% of respondents display optimism regarding the rising demand for their products in the coming year. In fact, 81% of the surveyed companies plan to maintain or increase their investments compared to the previous year.
Nonetheless, obstacles persist, primarily driven by escalating energy expenses (32%), rising material costs (25%), and constraints in material availability (20%). In response to these challenges, manufacturers are strategising a variety of actions, such as implementing price hikes for both customers and distributors (42%), extending contractual terms with suppliers (31%), and, on a more optimistic note, adopting or expanding automation and AI solutions in their production processes (30%).
David Hudson, a partner at FRP, said: “Looking at the results of this report, I am confident that manufacturers have the plans in place to succeed, with a singular focus on their long-term growth and prosperity. The results reflect what we are hearing anecdotally across FRP, as many of the supply issues firms reported last year have now been resolved to a large extent, with the most pressing concerns now on the demand side of the scale. We would hope to see at least a small recovery in demand as inflation eases and consumer confidence stabilises.”
