Our Q2 Regional Advisory Boards came to end, and it’s fair to say the difference between Q1 and Q2 feedback was stark. The somewhat optimistic outlook for 2022, with manufacturers seeking opportunities, has tempered.
Many are now facing a summer of persistently high energy prices, spiralling inflation and labour shortages.
⚡ Energy prices continue to hurt manufacturers. With no sign of this tailing off or reducing, manufacturers are taking active steps to reduce consumption where possible.
💷 Wage inflation is making recruitment and retention hard. With fewer people economically active, it seems everyone is competing for the same talent. Manufacturers spoke of the difficulty to keep pace with wage inflation, even though some are paying 15-25% above the average!
⛓ On-going supply chain issues. There continue to be some challenges in sourcing raw materials, and with supply chains still recovering from the pandemic. As a result, some manufacturers expressed concern in being able to meet current orders.
On 20th June we’ll be releasing our Q2 Manufacturing Outlook in partnership with BDO which will look at the impact of these significant external shocks. Keep your eyes peeled for those numbers.