Manufacturing businesses must double down on risks

Responding to the latest Manufacturing PMI, Simon Jonsson, Head of Industrial Products at KPMG UK, said:

“It is good to see strong demand for manufactured goods, but a lack of components is leading to increasing under-utilisation of UK factories, holding back productivity improvement and the wider COVID-19 economic recovery.

“Whilst some manufacturers are reassessing existing supply chains, finding new suppliers and more direct routes to source, many are left at the mercy of local and global supply chains, components shortages and logistics availability.  Inflation is also becoming a real concern.  As I warned earlier this year, these factors are now combining.  

“As the UK tries to sail out of the covid economic storm, these headwinds could slow progress.  It is even more important for manufacturing businesses to double down and manage these risks.

“As we look to 2022, manufacturers with strong demand that they are currently struggling to fulfil will be hoping that supply issues will ease.  They certainly won’t want increased trade friction with key markets, or detrimental impact of emerging COVID-19 variants, to make waters even rougher.”

ENDS.

For interview, contact:

Steven Reilly-Hii, Media Relations Manager (Consumer Markets and Industrial Manufacturing), KPMG, E: steven.reilly-hii@kpmg.co.uk , T: 07510 376635.

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020. KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.