The manufacturing industry, as the third largest sector of the UK economy, is a true powerhouse, and one which is incredibly important when looking at overall economic data for the country.
The most recent UK manufacturing sector data recently caused a slump in the pound’s growth, however, as it performed worse than economists had predicted.
Some of the potential reasons for this poor performance include adverse weather and rising costs of raw materials. In light of this recent news, here are some of the ways manufacturing companies may be able to boost productivity and growth.
Manage Brexit uncertainty
There is no doubt that the current uncertainty over Brexit and the UK’s economic future and trading partnerships is causing concern in many sectors of the UK economy. With many manufacturing companies reliant on trading with European (and non-European) countries, it makes sense that the looming exit date may be affecting operations and relationships with companies overseas.
Those manufacturing companies which want to push ahead with growth may want to begin negotiating with European counterparts to prepare for post-Brexit trading, and boost confidence by working with government authorities and schemes to make the necessary preparations for the UK’s exit from the EU.
Cheaper suppliers
It may be the case that manufacturing companies across the country are finding it difficult to cope with costs because the raw materials they need are now so expensive. This would almost certainly contribute towards a slowdown in growth, so cutting the overall costs of supplies to any given company should help to offset the slowdown.
Whilst finding cheaper suppliers is never easy, it is likely that it could help manufacturing companies massively in the long run, and so it should be made a priority for those which want to boost their longer term growth prospects.
Energy
Manufacturing companies use a large amount of energy on a daily basis. The costs of this energy add up, especially for companies using expensive suppliers. As such, it is important that all manufacturing companies find the most cost effective suppliers for their requirements.
Some manufacturing companies may be able to save money by considering using utility management and business electricity consultants. They could then spend the money saved on other valuable resources, such as new staff and construction materials.
Invest
It may seem an obvious point, but manufacturing companies also need to continue to invest in themselves in order to boost growth and productivity. Whilst this slowdown may put a dent in overall industry confidence, it should not cause leaders to be overly cautious.
By putting money into new resources, equipment and staff, manufacturing companies can continue to improve the efficiency and effectiveness of the services they offer, and take a positive step towards growth in the next quarter.
Whilst the manufacturing industry may currently be suffering from a dip in growth and productivity, there are still plenty of opportunities for companies to recover. If they can be positive in their strategy, whilst making savings in other areas of business operations, then there is every chance that the industry will strongly recover in the near future.
