Molly Cooper, Features Editor at The Manufacturer, caught up with Caroline Keohane, Head of Industry Growth at the Food and Drink Federation.
Caroline will be leading a roundtable discussion at the upcoming Manufacturing Supply Chain and Inventory Forum this September in Birmingham. In this video, they discuss the pressures facing food and drink manufacturers, building greater resilience through investment, and the importance of cross-industry collaboration.
Building resilience in a volatile supply chain
Food and drink manufacturers are facing continued pressure from inflation, geopolitical instability, climate-related disruption and increasing regulation.
Caroline explains that the sector has experienced several major structural shocks in recent years, from COVID-19 and Brexit to the war in Ukraine and more recent disruption in the Middle East. With food price inflation expected to reach 4% by the end of 2026 and potentially peak at 6.4% in July 2027, manufacturers are having to consider how they can manage rising costs while continuing to invest and grow.
For Caroline, resilience is about more than simply responding when disruption occurs. It is about anticipating what might happen and adapting accordingly.
The experience of the war in Ukraine, for example, has led many manufacturers to rethink how they manage energy costs, with businesses now hedging for longer periods to provide greater protection against future volatility.
Investing in technology, skills and productivity
While the current environment presents significant challenges, Caroline also sees opportunities for manufacturers to strengthen their businesses through investment.
Technology, robotics, automation, data and AI can all play a role in improving productivity and building resilience, alongside investment in the skills needed to support a future-ready workforce.
The FDF has identified a £14bn growth opportunity through the adoption of technologies including AI, robotics and automation across the food and drink manufacturing sector.
However, adoption is not yet universal. With 97% of the sector made up of SMEs, Caroline says businesses need additional support to de-risk investment and unlock the potential of new technologies.
Decarbonisation is another important part of building long-term resilience, with manufacturers looking to diversify their energy sources and reduce their reliance on traditional forms of energy.
Learning across manufacturing
With supply chain volatility increasingly becoming the new normal, Caroline is keen to hear how manufacturers are adapting to geopolitical and climate-related disruption.
At the forum, she will be looking to share experiences across sectors and understand what processes, technologies and training approaches businesses are putting in place.
Caroline believes there is significant value in bringing different manufacturing industries together. Food and drink manufacturers operate in a highly competitive, fast-moving environment, with short-term contracts and changing consumer demand creating a need to respond quickly.
Equally, the sector can learn from industries such as automotive and aerospace.
For Caroline, peer-to-peer conversations provide an opportunity to have honest discussions about what works, what doesn’t, and what businesses and government can do collectively to strengthen manufacturing resilience and UK food security.
Join the conversation in Birmingham
If these are the kinds of conversations you want to be part of, we would love to see you there. You can register now to secure your seat at the table for the Manufacturing Supply Chain and Inventory Forum on 24 September at the Eastside Rooms in Birmingham.
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