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Subcon survey shows impact of Covid on manufacturing and current recovery optimism
In a survey conducted ahead of next month’s return of the Subcon Show, more than half of UK manufacturers polled in July 2021 said they have been impacted negatively by the pandemic; 43% quite negatively and 10% very negatively. Budget cuts, job losses, customer disruption, chip shortages and supply chain issues were among the reasons cited.
On the flipside, 17% of the 81 respondents claimed they were not impacted at all, and 23% actually profited from Covid, with 14% saying their business was impacted ‘quite positively’ and 9% ‘very positively’ thanks to increases in sales, sector growth including medical supplies, and the opportunity to pivot online.
When asked how long they believe it will take for UK manufacturing to recover, 22% put their hands up to experiencing no losses with the remainder saying:
• 38% – within 12 months
• 26% – within 3 years
• 4% – within 5 years
• 3% – never
A follow up question asked how respondents believe the pandemic has changed UK manufacturing over the last 18 months. They said:
• 62% – it’s increased the need to protect our supply chains
• 52% – have made a move to more local/domestic sourcing
• 31% – it’s supported increased collaboration between companies
• 25% – have improved their employee wellbeing provision
• 10% – increased sustainability
Subcon event director Gordon Kirk, said: “The results of this year’s survey really do tell a tale of two halves, while more than half of those taking part in our survey have suffered negatively from the impacts of the pandemic, nearly a quarter profited and 22% experienced no losses at all. In addition, 40% believe we’ll make a full recovery within 12 months and there have been many positive outcomes from the last 18 months that I hope will not only stay with us, but continue to build momentum, including a rise in inter-company collaboration, a move to more domestic sourcing and increases in both sustainability and employee wellbeing services.
“We’re really excited to be bringing Subcon back in-person for 2021 and with over 200 suppliers, this year’s event presents a really timely and unique platform for UK manufacturers looking to source or develop a robust and localised network of UK supply chain partners.”
The find out more and register visit: Subcon Show 2021