• Thursday, July 18, 2024
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Concerns of economic slowdown prompt UK manufacturers to pause hiring plans

UK-manufacturing (1)

Manufacturing firms in the UK are halting their recruitment plans due to a decline in orders, according to a survey of over 300 manufacturers.

The research by Make UK and BDO reveals a significant reversal from a positive first half of the year, with warnings of an impending economic slowdown and potential recession.

Make UK has consequently revised its manufacturing growth forecast for 2023, predicting output to decrease this year with no anticipated growth in the following year.

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The survey also found that many companies have delayed investments due to uncertainties in the business environment and would welcome a formal industrial strategy.

In a similar report presented by Alliance News, Richard Austin of BDO said, “As a result, they are now battening down the hatches in the expectation that the next year is going to be anaemic at best and, potentially, much harder.

“Manufacturers are entering the final quarter on an increasingly unsteady footing. In the absence of an overarching industrial strategy from the government, businesses will be forced to cut back, protect margins, and focus on building operational efficiencies over the next few months.”