Cost of components and shipping are key concerns for manufacturers
4 Aug 2020
One in three manufacturers identify cite rising costs of raw materials and components among their two main economic challenges over the next three years, with nearly a quarter highlighting the price of shipping goods.
The survey included in research carried out by solutions and services company Delaware, focused on senior decision-makers at mid-market discrete manufacturers in the UK.
It revealed that:
More than a quarter (26%) of manufactures ssee reducing operating costs among the top operational challenges faced in their supply chain
Cost is among the top two challenges in streamlining manufacturing operations for 39%
38% identify rising cost prices as one the biggest impacts of Brexit on the supply chain
Nearly half (47%) of respondents rank cost reduction as one of two reasons to innovate
Cost is a major factor in streamlining manufacturing operations with nearly twice as many respondents listing it among their top two challenge, ahead of employee training (22%) and regulatory restrictions (21%).
“Keeping costs down across their operations is an overriding concern for every manufacturer in these uncertain times,” said Richard Seel, Delaware managing drector (UK & US) .
“Added to this, spending cuts and much tighter cost management will be an inevitable and pragmatic response to the virus outbreak as manufacturers look at ways in which they can improve the bottom line.
“Yet, the pandemic is set to have a far-reaching, long-term impact on the manufacturing sector, so manufacturers will also need to look at how digital transformation and the use of the latest advanced technologies can keep costs under control over the longer term.”