UK manufacturing shows signs of steely resolve despite rising costs

UK manufacturing signs of resolve despite rising costs

Justin Benson, a director in KPMG’s manufacturing practice, comments on the Markit/CIPS UK Manufacturing PMI figures published today.

1000

Also on KPMG.com

He said: “With another month of PMI data above the long-run average, and solidly in expansion territory, manufacturers must surely have a spring in their step this month.

“Albeit at a slower pace, another increase in new order volumes, driven mainly by overseas orders, has meant that almost 50 per cent of UK manufacturers expect production to be higher in 12 months’ time. Despite the increase in input costs, business confidence is on the rise, leading to further job creation across the spectrum of manufacturers, from small to large. While this is great news for the sector, raw materials were scarce in some areas and there is evidence that pressure is increasing on supplier capacity.

“KPMG’s Rethink Manufacturing survey has shown that two thirds of UK
manufacturers expect to offset rising costs by either achieving saving elsewhere, or absorbing them. Pressures on margins will increase, leading to potential price rises and increased risk in the supply chain. Therefore, manufacturers need greater transparency in order to spot potential risks to future supply of key components early, keep a close eye on cash/working capital and ensure contingency plans are in place.”

-Ends-

For media enquiries, please contact:
Jo Chileshe, KPMG Corporate Communications
T: +44 (0)121 232 3343
M: +44 (0)7919 211 803
E: jo.chileshe@kpmg.co.uk

Follow us on twitter: @kpmguk

KPMG Press Office

T: +44 (0)207 694 8773

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff.  The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Connect with us

 

Request for proposal

 

Submit

KPMG’s new-look website

KPMG has launched a state of the art digital platform that enhances your experience and provides improved access to our content and our people, whatever device you are on.