UK industrial manufacturers are riding high on a wave of newfound confidence, as figures reveal an uplift in sales revenue and purchasing.
Small and mid-sized firms saw their average sales jump by 7% in the third quarter of this year, a new report shows.
The number of purchase orders (POs) placed with suppliers was also up by 101%, according to inventory management software provider Unleashed.
Industrial manufacturers – which includes machinery, raw materials and equipment – saw the tenth biggest jump in sales out of all the 12 manufacturing categories analysed. It also saw the tenth biggest rise in POs.
Revenue and POs were both up by 88% across the manufacturing sector – signalling high confidence among consumers, retailers and other businesses.
Ted Bromley-Hall, Managing Director at UK landscaping products manufacturer IBRAN, said: "Customers are becoming ever more price focussed but don't want to sacrifice quality in pursuit of it.
"We've made a concerted effort to highlight the fact that all our products are made here in the Midlands, using raw materials sourced locally.
"The benefits of this to the customer are that they are able to work on an assured margin, knowing that layers of handling aren't inflating their price point."
The report also shows that industrial manufacturers are buying more inventory in anticipation of further orders.
It comes as the government announced in its recent Autumn Budget an investment of £13bn next year to ‘rebuild Britain,’ which includes 1.5m new homes and infrastructure projects.
Funding for existing multi-million pound schemes like the Innovation Accelerator have also been extended in the West Midlands.
Joe Llewellyn, GM of Cloud ERP at The Access Group, the parent company of Unleashed, said: “This uptick in sales revenue and purchasing bodes well for the manufacturing industry.
“Firms are buying more inventory – and while this might bring back bad memories of post-Covid disruption, when manufacturers were forced to adopt a ‘just in case’ strategy – it’s actually a positive sign in the current climate.
“Lead times remain low, so the orders we currently see flowing through the supply chain look like genuinely robust business confidence.
“It will also be interesting to see what impact the recent Autumn Budget will have on the wider manufacturing industry."
On the one hand, business leaders have warned that rises in National Insurance, minimum wages and business rates will hit them hard.
However, the government has pledged to invest in housing, public infrastructure, clean energy and technology, which could provide a welcome boost to manufacturers in the construction, energy and electronics sectors.