Trading expected to improve for manufacturers, Sussex forum hears

Published by

Giles Gwinnett

Left to right - David Greenough, NatWest, Tony Summers, Carpenter Box, Marcus Wright, NatWest and Debbie Venn, DMH Stallard - picture contributed

Trading conditions for manufacturers in Sussex and the south east are expected to improve and one in four expect to adopt artificial intelligence (AI) in the next 12 months.

These points were heard at the latest meeting of the forum METALL (manufacturing engineering technology alliance) - sponsored by accountants Carpenter Box, law firm DMH Stallard and bank NatWest.

The meeting, hosted by Carpenter Box, also heard there was strong support across the sector to achieve 'net zero'.

"It’s good to see the Sussex manufacturing sector successfully addressing many of the challenges it currently faces. Recovery from Covid was stronger than expected and there is growing interest in how AI adoption could positively impact productivity," said Tony Summers, partner and head of manufacturing and engineering at Carpenter Box.

"Net Zero, of course, is a key focus for the sector and many businesses have already taken significant steps towards making their operations more environmentally friendly. These include electrifying their fleet of vehicles, insulating their buildings, adjusting their heating and cooling systems and installing their own renewable electricity or heating."

Marcus Wright, senior economist at NatWest Group, also attended and provided the forum with an overview of the UK economy.

"The sharp rise in the cost of finance has led to a significant decline in the desire of businesses to stockpile goods," he explained.

"Of those manufacturing firms planning to adopt AI, the most common reason is to improve business operations, however, the largest reported obstacles are lack of expertise and upfront costs."

Wright also noted that with inflation expected to fall to 3% by the end of 2024 and interest rates at, or approaching, their peak, trading conditions for manufacturers were expected to improve.

Carpenter Box includes chartered accountants, auditors, tax and financial advisers and has offices in Worthing, Crawley, Brighton, Chichester and London.

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Giles Gwinnett

Giles Gwinnett is a writer at The Business Magazine. He has been a journalist for more than 20 years and covered a vast array of topics at a range of media settings - in print and online. After his NCTJ newspaper training, he became a reporter in Hampshire before moving to a news agency in Gloucestershire. In recent years, he has been covering the financial markets along with company news for an investor-focused web portal. His many interests include politics, energy and the environment. He lives in Dorset.