Manufacturers need to focus on inflationary pressures

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

“It is pleasing to see that demand for manufactured goods remains robust, but inflation across a broad range of factory inputs, plus trade friction, is biting into productivity.
Supply chain challenges persist for many manufacturers, who will be hoping the impacts of Omicron don’t worsen the situation further.

“In the face of this challenge, manufacturers need to focus on how they can absorb, or pass on, these inflationary pressures. In 2022, productivity improvements will be key. Inflationary pressures may be the catalyst for accelerating technology investments, both on the factory floor and in the back office.”

ENDS.

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.