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Following the news that manufacturing output volumes rose for the first time since November 2022 in May, Aggreko is signposting how businesses can best take advantage of the sector’s resurgence while supply chain challenges persist. Despite weakening order books, the Confederation of British Industry’s (CBI) latest Industrial Trends Survey (ITS) indicated that output volumes were at their highest in 18 months, with manufacturers also expecting output to rise steadily through to August. This uptick falls in line with growing confidence among UK manufacturers, with Make UK and PWC’s executive survey at the turn of the year indicating that most saw the UK as a more competitive place for production. However, with senior figures at S&P Global Market Intelligence warning earlier this year that supply chain issues could limit sector recovery, Ruth Martin, Sector Manager for Manufacturing at Aggreko, is indicating how this challenge can best be mitigated: “It’s fantastic to see that manufacturers confidence has not been misplaced, and that this has manifested in the form of increased outputs. “However, deep-rooted supply chain issues are showing no signs of subsiding any time soon, and must consequently be factored into any expansion plans that manufacturers have in store. This means thinking outside the box when it comes to the procurement of products and equipment in order to secure supply.” According to Ruth, some manufacturers are reporting lead times of up to 52-weeks for new equipment. Here, the ability to outsource power and temperature control equipment from a specialist such as Aggreko allows this challenge to be circumvented, enabling manufacturers to access the latest high-efficiency equipment without being subjected to lengthy wait times. She continued: “A growing market is likely to present new business opportunities, and manufacturers need to be reactive to this. Without immediate access to the necessary equipment, businesses are likely to miss out on these while others capitalise. “Here, the key to remaining competitive is outsourcing. Immediate access to the desired equipment allows manufacturers to remain agile and respond to opportunities as and when they arise. “This has the added benefit of being scalable, meaning equipment can be returned to the supplier once the opportunity has come to fruition, such as for a special production run. Only through this approach can we ensure that the sector continues to grow despite the many challenges that persist within the market.” For more information on Aggreko’s solutions for the manufacturing sector, CLICK HERE. |
Aggreko Warns Against Supply Chain Challenges Amid Latest Growth Figures