SALES SURGE SIGN OF RETURNING CONFIDENCE AMONG ELECTRICAL MANUFACTURERS, REPORT SHOWS

  Posted by: electime      5th December 2024

UK electrical manufacturers are riding high on a wave of newfound confidence, as figures reveal a dramatic uplift in sales revenue and purchasing.

Small and mid-sized firms saw their average sales jump by 71 per cent in the third quarter of this year, while the number of purchase orders (POs) placed with suppliers was also up by 122 per cent, according to a report from inventory management software provider Unleashed.

Electrical and electrical component manufacturers saw the third biggest rise in POs out of all the 12 manufacturing categories analysed. It also saw the seventh biggest jump in sales.

Revenue and POs were both up by 88 per cent across the manufacturing sector – signalling high confidence among consumers, retailers and other businesses.

Andreas Wagner, Managing Partner at kitchen manufacturer Rotpunkt, said:

“I believe that variety is fuelling this growing level of confidence, which is facilitating design and giving UK retailers even more opportunities to grow. So I would encourage them to lean into the creative and commercial possibilities which come with premium manufacturers.

“As homeowners are increasingly aware of the importance of indoor air quality, recyclable and renewable materials, as well as shopping with a conscience for the long-term, so highlighting the features and benefits which will meet and surpass each unique brief will be hugely important.”

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

It comes as the government announced £100m in funding for clean energy projects in its recent Autumn Budget to meet its ambitious net-zero target by 2050. Renewable energy generation will play a huge role, as the government looks to invest in onshore wind, solar power and nuclear energy technologies.

There are also tax incentives for electric cars, which could boost demand for electrical manufacturers.

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.”