Britain’s makers are set for a year of resilience and growth
IN LIFE forecasts are to be taken with a heavy pinch of salt. On 15 October 1987 Michael Fish told the country tomorrow’s weather was going to be just fine. Some 24 hours later and the UK had been battered by the worst storm for three centuries. In 2016 Ladbrokes revealed some 95 percent of punters put their money on Britain remaining in the European Union. And in early 2023 the International Monetary Fund proudly claimed the UK would be drowning in the midst of a terrible recession by now.
So perhaps it is an act of sheer folly to risk making grandiose predictions about what 2024 has in store for all those in the business of manufacturing. That said, it’s ever so tempting to think about what the future might look like for us all in the sector. So here are my four predictions for the year ahead.
First, there are immense grounds for optimism for Britain’s makers. In August, Britain overtook France as the world’s eighth largest manufacturer. And the country in seventh – Italy - is there for the taking should the UK Government commit to an industrial strategy that targets boosting manufacturing to the point where it represents 15 percent of our GDP.
On an anecdotal level you can, after a challenging few years with COVID-19 and the drag created by a tighter monetary environment, feel the orderbook begin to fill up nicely. We are seeing more enquiries for our products from a wider diversity of international markets. And I can only see that increasing as the global economy starts to chart a course free from the burden of rapid interest hikes or historically high inflation.
Second, UK manufacturers are likely to see strong growth in exports as post-Brexit trading arrangements are ironed out. Indeed 2024 could be particularly fruitful on the export front as Whitehall continues to work on trade deals with India and the countries of the Gulf Cooperation Council including states such as Qatar, Saudi Arabia, and the United Arab Emirates.
Third, stronger growth in manufacturing in 2024 will be made possible by the judicious use of automation in a way that complements rather than replaces human endeavour, ingenuity, and creativity. This means that Britain’s makers will better use technology to streamline the most expensive elements of their sales and production processes.
In our factory in 2024 we will increasingly automate our system for dealing with the leads that are sent in by businesses from around the world. Whereas previously a human would have to shift through an incessant chain of incoming emails, an algorithm can better process requests and ensure prospective customers are immediately put in touch with the correct person that can meet their needs. And as a result our clients are given an even better service.
Fourth, I can see Britain’s manufacturers getting much greener, much quicker than in previous years. The last big survey of attitudes towards sustainability conducted just after the pandemic by Make UK revealed that some 90 percent were aware of the 2050 Net Zero target and around half were already taking concrete steps to reduce the carbon impact of their business. I can only see this increasing in 2024, with a strong majority of manufacturers accelerating delivery of energy saving measures in all areas of the business.
We were proud last year to announce a raft of measures in a bid to meet the UN’s Sustainable Development Goals (SDGs), adopted by the UN in 2015 as a universal call to action to end poverty and protect the planet. We committed to planting 600 trees a month and installed areca palm plants around our factory to capture carbon. We also installed plants around our car park to capture exhaust fumes. We are seeing many manufacturers introduce similar measures, and I can only see this ramping up in 2024.
The challenges faced by each of Britain’s manufacturers are extremely varied and as complex as ever. But I’m confident that our sector can look ahead to 2024 with real optimism.
David Millar is Chief Executive of Heap & Partners.
