With consistent contraction for manufacturers in 2023, the industry is hoping for a significant improvement in trading conditions throughout 2024.

With inflation set to continue to fall, consumers’ real incomes beginning to grow and interest rates looking like they have peaked, there is more room for optimism in 2024. The steepest declines in new orders and falls in backlogs of existing work should now be over. This means more manufacturers will be able to focus their attention on future profitability and improving operational efficiencies.

As the industry continues to face productivity challenges, skills shortages, global competition, and environmental pressures, manufacturers will be looking to the government to provide a long-term vision. Even with some positive measures introduced by the government in the Autumn Statement, there remains a lot to do. Our recent survey run in partnership with Make UK showed that large parts of the industry are unhappy with existing tax and regulatory systems and the current level of investment in UK infrastructure. If a fully-fledged industrial strategy transpires during 2024, then manufacturers will feel more confident in making long term strategic investments and this will contribute towards a more buoyant market for transactions.