The geopolitical climate has become more volatile in recent times, putting pressure on global supply chains and triggering inflation. For manufacturers, this has led to a build-up of inflationary pressures, all of which need diffusing now.
Rising energy and prices are forcing UK manufacturers to increase prices, but there is a limit to how far they can go. With inflationary pressures increasing, they need to consider alternative strategies.
While many businesses have set out on their net zero journeys, others are just getting started. Either way, the pressure on Boards to take action is mounting and planning for net zero has risen up the agenda.
At a time when inflation is rising and supply shortages are impacting productivity, cost control has never been more important. So, how can manufacturers go about optimising costs when operating in uncertain markets?
Rising inflation is adding to the pressure on manufacturers. Rather than allowing inflation to erode margins, businesses must decide whether to pass the increase onto customers or reduce their cost base.
To plot their path to net-zero, businesses will need to instigate a bespoke decarbonisation roadmap and demonstrate their willingness to adapt their operations and systems.
Inspirational examples of innovation in response to shifts in market demand have been a stand-out feature of the past year, with many manufacturers pivoting to focus on revenue generation during the pandemic
Many manufacturers have faced significant supply chain disruption over the past year. By focusing on improving supply chain resilience there is an opportunity for OEMs to position themselves for growth and profits.