UK manufacturers on strong footing for 2025, report shows

Small and mid-sized firms saw their average sales revenue jump 88% in 2024, while the number of purchase orders (POs) placed with suppliers was also up 88%, according to a report from inventory management software provider Unleashed.

Personal care manufacturers recorded the biggest jump in sales revenue at 137%, followed by food at 133%. Electronics and telecommunications firms saw the biggest increase in POs at 164%, followed by fashion manufacturers at 123%.

The report also shows manufacturers are buying more inventory in anticipation of further orders.

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."