Over two-fifths of UK manufacturing firms are considering cutting costs due to the rising prices of raw materials, according to research from leading commercial insurer NIG.
Of the 500 UK businesses with an annual turnover of over £50k questioned in survey, 43% made the cost cutting admission.
In an industry battling with rising costs, 21% stated that they were thinking of changing business processes and/or products, with nearly one in ten (9%) stating they may be forced to move to different office premises.
Martin Hall, Director of Commercial Underwriting at NIG, said: “The UK manufacturing sector is facing a number of challenges and the rising cost of raw materials has become a key concern for many manufacturers and similar businesses.
“While many are taking steps to cater for these challenges, it is vital that businesses assess the risks they face and make sure they are not leaving themselves exposed to unnecessary risks and threats,” he added.
The survey also found that despite the challenges of rising materials costs and business thefts, 13% of manufacturers admit they have never had a risk assessment carried out on their business.
This ranks below retail (19%) and construction (15%) businesses, but trails the hotel and catering industry (3%).