Manufacturing News – September 2024
Estimated reading time 4 minutes
Strong levels of M&A activity are expected across UK manufacturing for the remainder of 2024, as dealmakers see a rise in business confidence. According to accountancy and business advisory firm BDO, M&A activity looks set to gain momentum in the final quarter of the year, as long as the political and tax backdrop remains conducive to dealmaking. However, reports of a potential rise in capital gains tax in next month’s Autumn Budget could impact sentiment towards M&A transactions
Manufacturing output volumes fell sharply in the three months to September, according to the CBI’s latest Industrial Trends Survey (ITS). Manufacturers expect output to decline again in the three months to December, the first-time expectations have been negative since November 2023.
Both total and export order books deteriorated in September, relative to August, and were reported as well below their long-run averages. Expectations for selling price inflation eased in September, with prices expected to rise at a rate close to the long-run average. Meanwhile, stock adequacy (for finished goods) fell slightly, but remains close to the long-run average.
The government has announced funding to enable the West Midlands to focus on accelerating its advanced manufacturing capabilities.
The UK manufacturing sector’s recovery continued in August, with output, new orders and employment all rising, new figures released this morning show.
According to the S&P Global UK Manufacturing Purchasing Managers’ Index™ (PMI®), there were further signs of price pressures easing, as rates of inflation in input costs and selling prices both slowed. The seasonally adjusted PMI rose to a 26-month high of 52.5 last month, up from 52.1 in July and unchanged from the earlier flash estimate. The PMI has now signalled expansion in five out of the past six months (the exception being April).
In contrast, Eurozone manufacturing continued to struggle in August, with the HCOB Eurozone Manufacturing PMI remaining unchanged at 45.8. According to the PMI information, it is the euro area’s big-two economies — Germany and France — that are weighing down the rest of the sector. Eurozone manufacturing has now remained below the 50 mark (which signals growth or contraction) on an ongoing basis since July 2022.
Speaking about the Eurozone numbers, Dr Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said: “Things are going downhill, and fast. The manufacturing sector has been stuck in a rut, with business conditions worsening at the same solid pace for three straight months, pushing the recession to a gruelling 26 months and counting”.
A new report from the UK’s High Value Manufacturing Catapult predicts what the country’s manufacturing sector could look like in the future if it was built on a foundation of automation and robotics (A&R).
The 2050 vision for automation and robotics in UK manufacturing report looks at the current state of A&R in the UK, highlighting its strengths, weaknesses, opportunities and threats, as well as outlining a vision for A&R in the future. The 41-page report, produced by the Manufacturing Technology Centre (MTC) with contributions from other High Value Manufacturing Catapult centres, argues that there will be widescale adoption of A&R across the sector by 2050.
A Coventry robotics firm has won a “multi-million pound” contract in Spain to deliver automated assembly lines for electric vehicles. Expert Technologies Group, which has a base on Sayer Drive, will be working with Sumitomo Electric Bordnetze (SEBN), a global supplier of automotive parts
Small to medium-sized manufacturers in Warwickshire are being urged to take advantage of a dedicated £500,000 business support initiative that will help them boost sales, create jobs and improve productivity.
The Warwickshire Manufacturing Growth Programme, which is delivered by experts Oxford Innovation Advice, has already supported over 80 local companies to unlock barriers to growth through one-on-one coaching, consultancy, free workshops and signposting to other schemes.
Backed by funding from the UK Shared Prosperity Fund (UKSPF), the specialist support is available until March 2025 and, encouragingly, there is still scope to assist more manufacturing firms across North Warwickshire, Nuneaton & Bedworth, Rugby, Stratford-upon-Avon and Warwick.
For further information, please visit www.warwickshire-mgp.co.uk or contact Michelle Connor on 07790 358674.
