2 minute read • published in partnership with Forterro
Insight: Study shows 72% of mid-market manufacturers see increased profitability because of more sustainable operations
Research from European software provider Forterro has revealed that 72% of UK mid-market manufacturers have reported increased profitability because of operating more sustainably.
The study also shows the extent to which UK manufacturers are now focusing on sustainability, with 84% of respondents saying it is a priority. 71% said their organisation has a dedicated resource to address sustainability, while three-quarters said it has a net zero plan.
Supply chains are one of the main areas where UK mid-market manufacturers are focusing their sustainability efforts, with 85% of respondents reporting digitalisation of supply chain and logistics operations to improve transport efficiency.
Almost half (46%) of manufacturers are most motivated to localise their supply chains for better control, while 43% see cost reduction and 38% prioritise sustainability as a key driver for localisation. Customer demand also plays a role, reflecting shifting market expectations and the need for manufacturers to adapt to meet those changing requirements.
A report by Forterro has revealed that 72% of UK mid-market manufacturers have reported increased profitability because of operating more sustainably / Picture: Getty/iStock
Technology can be used to significant effect when it comes to sustainable operations. ERP can help mid-market manufacturers enhance their sustainability efforts, making it easier to manage resources efficiently, reduce waste, manage inventory, and maintain compliance with environmental regulations. 82% of the research respondents said that ERP helps their organisation operate more sustainably.
David Coste, president for North & Western Europe at Forterro, said: “Operating more sustainably while maintaining market share and controlling costs has historically been a challenge for any UK mid-market manufacturer, but this research shows how seriously organisations are now taking sustainability. It’s not just a corporate responsibility but also a driver of financial success. Manufacturers are aware of this and are taking purposeful, accountable steps to be sustainable.
“For mid-market manufacturers, an ERP system is a highly effective way to manage resources more responsibly and take meaningful steps towards Net Zero. It’s a proactive measure that can both reduce costs and help companies meet increasing demand for environmentally friendly products and operational practices.”
The findings come from a Forterro report – The UK Midmarket Manufacturing Report: Key Tech Trends, Best Practice and Future-Proofing – which you can download below.
