Manufacturers enter 2024 with increased optimism

31 January, 2024

The findings come from a major survey of over two hundred senior manufacturing executives published by Make UK and PwC. The survey shows that after a very difficult few years through the pandemic and, the shock to energy prices, there are optimistic signs with companies more bullish about the prospects for manufacturing in 2024. As a result, the majority of companies are seeing opportunities outweighing the risks to their business.

Manufacturers are backing this belief with investment in new products, expansion into new markets and accelerating use of new digital technologies to improve their business.

However, the survey also shows that manufacturers are wary of the prospects for both the UK and global economies, while significant challenges remain in the faces of increased energy and employment costs, as well as access to domestic skills.

Stephen Phipson, Chief Executive of Make UK, said: “The last few years have been a rollercoaster of emotions for manufacturers, yet they have more than demonstrated their resilience time after time. We are now seeing some hope that conditions may be improving, amid a more supportive and stable policy environment, but this must be cemented within a long term industrial strategy. While undoubted challenges remain, the accelerating use of digital technologies, our strength in innovation and expansion into new markets sets the scene for manufacturing to be at the heart of efforts to boost growth.”

Cara Haffey, Leader of Manufacturing at PwC added: “After what has been a rocky few years for manufacturers, it seems there is a cautious optimism in the air. In fact, our research showed that in the year ahead, more than half of them are planning to seize opportunities in new products, with more than a quarter (27.3%) hoping to explore uncharted territory, and expand into new markets. For many, despite January’s to-do list likely looming large, as the headwinds of sustained economic challenges, geopolitical instability, and steep employment and energy costs continue, the horizon seems brighter.”

According to the survey more than half of companies (52.7%) see the UK as a more competitive place to manufacture. This compares to just under a third (31%) in the same survey a year ago following the political chaos of 2022. Less than a fifth (16.6%) believe the UK is not a competitive place in which to manufacture.

Furthermore, almost a third of companies believe the UK is increasing its competitiveness against Germany and France (30.7% and 30.2% respectively) while more than a quarter believe the UK is moving ahead of Spain and Italy (29.3% and 28.3%). These figures are greater than those who see the UK’s competitiveness decreasing against EU rivals.