According to the second-quarter Manufacturing Outlook survey published by business advisory and accountancy firm BDO and Make UK, manufacturing sector activity continued to show signs of bouncing back, suggesting the sector may avoid a substantial recession.
The electronic and transport sectors were found to have performed particularly well, with the former, which mostly relates to the aerospace sector, having a balance of output of +82%. This strong value is believed to have been driven by increasing passenger air travel and large order numbers for new aircraft. The strong demand for electronics, meanwhile, is thought to have resulted from UK companies seeking to mitigate labour shortages by investing in more automated capacity and digitalisation.
James Brougham, senior economist at Make UK, said:
“Manufacturers are seeing a gradually improving picture but the word ‘gradually’ is doing a lot of heavy lifting. However, companies are at least seeing a relative period of stability after the political and economic turmoil of the last few years when they have spent most of their time firefighting.”
He added that there are still some significant hurdles to overcome and suggested that an all-encompassing industrial strategy would be needed to substantially boost the prospects for growth.
Despite the welcome news, the environment will almost certainly remain competitive in the short term. At TrAchem, we can help simplify your processes by consolidating your lubricant supplies. We stock multiple brands, so we can supply Castrol Molub-Alloy alongside other brands’ products, such as Quaker Houghton Metalina and Morris Workshop Pro.