The forecasts tell us otherwise, but should we always look on the bright side of life?

We ended 2022 on a less than positive note, with forecasts casting a shadow on the year ahead. There’s no doubt that 2023 will be another tough year for manufacturers, based on the foundations of three years that have really tested the resilience of the sector.

?But, when I flick through the manufacturing news that’s been published today [https://news.insidermedia.com/q/17Muz3SZlAbsm9nXHTPVr4/wv] there is cause for optimism in the stories that I read. Whether it’s successful MBOs, marking the dawn of a new era, job creation in the hundreds across well-known manufacturing facilities, news of expansion or ‘transformational’ investment, there’s not one piece of negativity amongst a raft of stories.

Yes, we can all paint our own picture to give the impression of growth and prosperity, but perhaps we need to look beyond the forecasts at the individual stories coming out of the region, to give us a clearer idea of where things are headed.

It’s also reassuring to see the positive intentions manufacturers have for the year ahead. According to our latest Rethinking the Economy survey of 500 mid-sized businesses, 79% of manufacturers feel more optimistic about their business prospects at the start of 2023, compared to the end of 2021. Similarly, nearly a quarter admitted that they were significantly ahead of forecasts.

There are clearly pockets of optimism in the market and it’s important for those businesses to take the lead when it comes to guiding the sector through recession. But what is it that manufacturers intend to do to try and spark growth in the year ahead?

The focus is around investing in new efficiencies, such as automation, seeking funding to pay down debt, and investing in ESG in a bid to attract more customers, respond to the increasing interest from employees and reinvest savings from reducing the business’ carbon footprint.

The truth of the matter is, there’s no one single solution to weathering the financial storm we’re facing, and we cannot deny the tough market conditions that lie ahead. But there is reason for optimism and perhaps the key is to keep a focus on the good and not the bad.

If you would like to discuss the blog in more detail, or how to navigate the current economic headwinds facing manufacturers, contact me on [email protected] or call 07970 115322.