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🚨 Emergency pre-recess package of business support required

Manufacturing Mondays
Manufacturing Mondays
Rewind to the start of the year, and some of you may remember the quiet optimism that 2022 was supposed to bring. Well, six months on and our Q2 Manufacturing Outlook data - published in partnership with BDO - shows that optimism has well and truly been dampened.
The potent cocktail of rising energy costs, spiralling inflation and ongoing supply chain disruption mean output, orders, employment intentions and investment have all slowed.
That’s why today, we are calling for an emergency, pre-recess package of business support measures to help shield companies from a potent cocktail of escalating costs amid a worsening economic outlook.
The seriousness of the situation and, the worsening prospects for the next six months, means that we cannot wait for the promised help in the Autumn which the Chancellor made in the Spring Statement.
Action is required urgently before the summer recess. 

Q2 Manufacturing Outlook results are in
Today we’ve published our Q2 quarterly Manufacturing Outlook results in partnership with BDO. These are the first set of results that take into account the potent cocktail facing manufacturers right now.
So what do the results show?
  • Output and orders are still positive but exhibit continued to decline, while new orders become pedestrian
  • UK and export growth slows with the latter almost negative
  • Price growth reaches yet more record levels with margins squeezed
  • Recruitment slows with vacancies at record levels, investment dropping sharply
  • The majority of companies will make pay settlements at or above the level of inflation
  • Two-thirds of companies say rising energy costs cause catastrophic or major disruption
As a result, we have revised the growth forecast for manufacturing down to 2.3% (down from 3% in Q1 and 3.3% in Q4 2020) and 1.7% in 2023.
Make UK / BDO: Q2 Manufacturing Outlook
Make UK / BDO: Q2 Manufacturing Outlook
We should say some of the factors impacting companies are global and cannot be contained by the UK Government alone. However, just as it is quite rightly taking measures to protect the least well-off, given the rate at which companies are burning through their balance sheets just to survive, Government must take immediate measures to help shield companies from the worst impact of escalating costs and help protect jobs.
We are also now seeing the effects on investment of the political chaos and uncertainty of the last six years.
Make UK / BDO: Q2 Manufacturing Outlook
Make UK / BDO: Q2 Manufacturing Outlook
As a result, there is an urgent need to move away from the weekly roster of short-term gimmicks and put in place a long-term economic plan and vision. In fact, it’s something we warned a few weeks back in this Manufacturing Mondays - veering from crisis to crisis is damaging confidence.
We’ve made a number of recommendations for measures Government can introduce now to address rising business costs including the following:
  • Waive or reduce business rates for the next 12 months
  • Implement VAT deferrals for larger businesses and waive them completely for SMEs
  • Temporarily freeze the Climate Change Levy and, if energy costs continue to rise, remove it completely
  • Review the efficacy of the business interruption loan schemes introduced during the pandemic and deploy a successor scheme by Q3
  • Extend the super-deduction investment policy
  • Make the increase in the Annual Investment Allowance permanent
👀 All eyes now turn to the Chancellor.
Countdown to National Manufacturing Day begins
Last we kicked off the countdown to National Manufacturing Day in Parliament, with MPs and apprentices.
There was a fantastic turnout, with MPs from across the House coming to learn more about our policy campaigns, take part in a Lean Manufacturing challenge with apprentices, and take a cheeky pic pledging their support for National Manufacturing Day!
The message of the day was simple, more than ever before, our industrial base is the foundation of our economic success. To kickstart growth we must support our UK manufacturing sector to expand and grow - we’ll be sharing exactly how in our upcoming submission to the Autumn Budget.
Check the pics on Twitter 👇
Make UK Campaigns
We hosted a fantastic drop in session today in Parliament to celebrate and champion #ukmfg ahead of National Manufacturing Day on 7th July.

Great to see so many MPs undertaking the Lean Manufacturing challenge too led by our wonderful apprentices!

#NMD2022 #BackingManufacturing https://t.co/mZLp6Vbm7R
Make UK in the news
📈 We shared our thoughts with BBC News on what the interest rate rise means for manufacturers, and the unintended consequences it may have.
UK interest rates raised to 1.25% by Bank of England - BBC News
⚠ And also a warning on potential changes to the Northern Ireland Protocol.
Faisal Islam
Manufacturers organisation @makeUK_ says NIP needs to be changed “But the way to do this is not to start a trade war with EU in middle of a financial crisis which would be damaging for both British & EU businesses alike and put further strain on already stretched supply chains” https://t.co/WhUoZopuHC
We 💚 policy and manufacturing, so let’s talk:
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📧 Email
💬 LinkedIn
🔗 Linktr
Copy editor: Bhavina Bharkhada, Make UK Head of Policy & Campaigns
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Manufacturing Mondays
Manufacturing Mondays @MakeUKCampaigns

We discuss the big issues impacting the UK manufacturing sector, and our policy ideas to overcome them.

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