Recession arrives but inflation stays stable – finding the positives in our manufacturing newsletter

Last week, headlines were dominated by news of the UK dropping into a shallow recession late last year, adding to a gloomy picture for manufacturers that includes low output and shipping disruption. Consolidation and growth through cost control may be the orders of the day, but there is also promising news that inflation rate has at least stayed stable, despite the challenges of the Red Sea Crisis, and retail sales are seeing a rebound – with contingent positive consequences for manufacturing demand.

As belts potentially tighten, it is a perfect time to audit your spend and budgets, streamlining your procurement processes. We have an upcoming webinar, Getting Control of Spend, to help you do just this. Hear from the Heads of Group Procurement at furniture retailers DFS and shipbuilders Harland & Wolff – both likely to provide insight into manufacturing’s specific challenges. Register now.

We are also approaching April and changes to legislation around wages that will affect your workforce planning and payroll function. Adjustments to paternity leave and entitled holiday pay for part-time workers are the reforms most likely to affect the manufacturing industry: we provide explainers and top tips for how you can get prepared.

Read on for the most important manufacturing headlines and insight in our biweekly roundup:

? Key headlines for UK Manufacturing firms???????

Britain’s tea supply facing disruption from the Red Sea crisis - Food manufacturers are starting to feel the pressure from reroutes around the Red Sea, slowing trade between Asia and Europe. The unprocessed black tea shipped to the UK for processing and packaging is the first food item to be involved in warnings of delays.

UK manufacturers accelerate ESG strategies - New research from Make UK and Lloyds Bank reveals there has been a 48 per cent increase in the number of manufacturing firms setting Environmental, Sustainability and Governance (ESG) targets for their business. Two-thirds of manufacturers are planning to scale up their ESG operation over the next two years. Firms who ignore corporate social responsibility are at risk of falling behind their competitors.

New ￡500m decarbonisation fund open to manufacturers - The Department of Energy and Security and Net Zero is offering funding for decarbonisation and energy efficiency projects, and will be prioritising manufacturers. Companies have until April 19 to apply, with remaining funding allocated in an autumn window. More on the Government website here.

Inflation comes in below expectations at four per cent thanks to falling food prices - Monthly prices for food and non-alcoholic drinks fell by 0.4 per cent, the first fall in prices since September 2021, a contributing factor to lower than expected inflation.

?? Food for thought from Advanced???

What do new paternity changes mean for distribution, logistics and manufacturing firms? - Manufacturing employees skew male, and there is now greater flexibility for when they can take their parental leave. Make sure this is facilitated and communicated to your staff.

What new pay reforms mean for distribution, logistics and manufacturing firms - There is now a standard way to assign holiday for your part-time, zero hours or seasonal staff - make sure it is incorporated into your payroll solution.

How manufacturers can bring flexibility into the frontline - It is easy to assume that flexible working does not apply to manufacturers, with most jobs having to be completed onsite. However, there are ways that the working week can be made more flexible, including changeable shift patterns, allowing for training and administrative tasks to be conducted at home, and the four-day week.

??? Join our webinar?

Getting Control of Spend - We're delighted to have Dionne Loughrey (Head of Group Procurement at DFS ) and Natasha Brown (Group Procurement Director at Harland & Wolff ) join our Global Business Development Director, Mark Reddy , for a brand new discussion series, 'Getting control of spend'.

They will be diving into the initial phases of spend management, such as improving the transparency of your supplier database and contracts, the significance of cultivating stronger supplier relationships, and successfully starting your procurement transformation journey by aligning your personnel, processes, and technology. Register now.

We hope you have found something of interest in our biweekly newsletter – see you in a fortnight as we anticipate the Spring Budget...

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