Manufacturing sector enters busiest period for almost 30 years

In June, UK Manufacturing grew at its fastest rate for almost 30 years according to the Purchasing Managers' Index whilst worldwide factory output is close to an 11 year high and is still unable to meet order demand.

AGW are enjoying this busy period, along with many other companies and sectors. However, we also have the same problems that world manufacturing is finding in general, in this climate. There are staff shortages across the industry, due to a lack of people to recruit & the competitiveness within the market, alongside the loss of staff due to self-isolation rules.

On top of issues with staffing, there is a supply shortage of many materials and lead times continue to grow longer. These component shortages are highlighted particularly within the construction, electronics, plastics, metal and packaging materials industries.

With this increase in order intake and the inability to expand output, the manufacturing industry as a whole is struggling to keep on top of demand, leading to the question; what will happen to the manufacturing industry and when will stability return?

What has caused this demand and supply problem?

Is it post-Covid consumer demand? Is it because manufacturing facilities that closed because of Covid, have not re-opened? Is it because projects that were postponed due to Covid have now been reinstated?

Some have blamed Brexit, and although there has been an increase in issues when it comes to the movement of goods to and from the UK, France and Germany are suffering from the same problem. alongside the USA.

AGW, alongside many others within the manufacturing industry, are doing their best to keep the supply chain functioning finding innovative methods and materials to ensure supply meets demand.

Nigel, Joint Managing Director at AGW said:

"We've said it a lot over the past year, however, it remains the same - these are difficult, but very interesting times, leading us to look at new, unconventional methods, materials and processes to ensure we can continue to serve our clients, old and new. We're looking forward to overcoming these challenges, working in partnership with our clients and suppliers."

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