New report on state of UK metals industry to be launched in Birmingham next week
A first-of-its-kind report into the state of the UK metals industry will be officially launched at the giant Metals Expo in Birmingham, which starts on September 13.
The UK Metals Council came up with the report, which surveyed companies to get an idea of the challenges and opportunities for those in the sector, along with the prospects for growth.
Rising energy costs, Brexit and labour shortages continue to be major issues, although 70% of respondents said they were 'optimistic' or 'very optimistic' about future business prospects.
The findings will be sent to the government.
Rachel Eade MBE, chair of the UK Metals Council, which represents the interests of more than 11,000 companies, said the report had been a "unique opportunity for us to canvas the views of primes, metal producers and those in the downward supply chain".
"The issues they are facing span from supply chain disruption because of Brexit to availability of raw materials and how they can mitigate the cost of energy – a key issue when you consider levels of consumption in our industry.
"Skills and the ability to get new people into our sector is also a challenge that is holding many of them back as they look to support the UK’s desire to move towards Net Zero.
"We’ll be highlighting this to Government at the UK Metals Expo next week."
Lord Rupert Redesdale, chair of UK Metals Expo, added: "UK Metals Expo is the perfect platform for launching the report, with more than 200 exhibitors and 4000 industry professionals attending from 52 different countries."
He added: "We anticipate lively discussions on the report’s findings over the two-day event and eagerly await feedback from attendees."
Almost 25% of firms surveyed admitted to adjusting supply chain strategies or sourcing alternatives, whilst just under a third want enhanced government support to navigate trade barriers and procedures in the wake of Brexit.
Also, 22% of manufacturers are also looking for improved energy supply contracts and only 31% said they had an effective recruitment strategy in place for filling labour gaps.
For Andover-based MRT Castings, for example, which invested in one of the UK’s newest foundries in 2020, Brexit has been a major issue.
Shipments to one of its largest customers in Ireland used to take less than 24 hours, now the same journey is taking between three and five days.
"We don’t want handouts, just a level playing field," said Phil Rawnson, managing director, who also said he had seen the firm's energy prices treble over the last 18 months.
Kirsty Davies-Chinnock , from West-Midlands-based Professional Polishing Services (PPS) has managed to negotiate a new fixed energy contract starting in October, costing an additional £100,000 per year - an 84% increase on the previous rate.
"I’ve spoken to a lot of MDs I know, and they’ve been tied into contracts that are 300-400% more than their last ones – that is unthinkable.
"Even at 84% we are going to have to pass some of the additional costs on to our customers and we’ll work with them to do this, whilst also implementing the energy efficient measures we can on our own shopfloor," she said.
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