Manufacturing

Market Overview

The Manufacturing sector employs 2.5 million people earning wages 12% higher than the whole economy (on average £35,277) while representing 64% of all the country’s business research & development. These are only some facts justifying the UK’s position as the ninth largest manufacturing nation in the world (Make UK, 2022).

However, concerns over the rising costs and a future 6% increase in corporation tax in tax year 23/24 will negatively impact business investment confidence and international inward investment in the manufacturing sector. In the current context, increasing productivity has never been more critical for UK Manufacturing (Datahone, 2022).

Industry Challenges

  • Supply chain and shipping concerns
  • Rising energy and raw material costs
  • UK Inflation & Taxation (Datahone, 2022)

Investment Opportunities

  • Super deductible tax regime
  • Productivity & Innovation Governmental Schemes
  • Industry 4.0 and the rise of automation (Datahone, 2022)

Statistics

The sector accounts for £183 billion of output – (Make UK, 2022)

Manufacturing represents 15.3% of the total Rochdale’s employee jobs – (Nomis UK, 2020)

Almost a quarter of manufacturing employees (24%) want more physical health support – (Make UK &Westfield Health, 2021)

65% of manufacturing workers say their work-life balance does not feel normal – (Make UK &Westfield Health, 2021)

Wholesale

Market Overview

Wholesalers have battled the challenges of Covid and Brexit with aplomb.

While those serving the convenience grocery sector have enjoyed strong sales in the past two years, the industry made a loss, with food service specialists suffering massive sales declines after numerous lockdowns and hospitality restrictions (The Grocer UK, 2022).

On the other hand, sustainability has been a highly prioritised business initiative in response to growing consumer demand and retailers’ relevant practices. Overall, web turnover doubled during the pandemic and has grown at a strong +82% post-pandemic, just above the +76% recorded app growth (Lumina Intelligence Wholesale Online Retail Report, 2021).

Industry Challenges

  • Lack of products availability (The Grocer UK, 2022)
  • Changed relationship dynamics between wholesalers and retailers (Speciality Food Magazine, 2022)
  • Worker shortage and UK food price rises (The Guardian, 2021; The Grocer UK, 2022)

Investment Opportunities

  • Wholesale Online Experience Booming (Better Wholesaling, 2022)
  • Many Trading Styles and AI Adoption (Better Wholesaling, 2021; Better Wholesaling, 2021)
  • Embracing Sustainable Practices (Better Wholesaling, 2022)

Statistics

In 2022, the industry revenue is expected to be £854.9 billion (Statista, 2021)

Pharmaceutical Wholesaling is the 9th biggest industry by revenue in the UK, noting $61.9B for 2022 (Ibis World, 2022)

Half of UK retailers said they expect updates on legislation from their wholesalers, as per Lumina Intelligence’s UK Wholesale Market Report 2020-21 (Speciality Food Magazine, 2022)

Retail

Market Overview

In 2022, with inflation, tax changes, labour shortages, and supply chain disruptions having an intense presence, concerns aren’t going to be absent for retailers. Nevertheless, those looking to win the battle for share of the wallet in this low-growth environment will need to focus on five key areas: delivering hygiene and differentiation in customer experience, effective cost management, investing in new supply chains models, upgrading their channel strategy and adopting sustainability policies (PWC, 2022).

Industry Challenges

  • Meeting Customer demands (PWC, 2022)
  • Automation and human staff reductions (Data Centre Dynamics, 2021)
  • Dealing with cost inflation (PWC, 2022)
  • Overcoming supply chain pressures (PWC, 2022)

Investment Opportunities

  • Integrating ESG (PWC, 2022)
  • Touchless Retail (Ms Consultants, 2021)
  • New Platforms Adoption: Quick, Social and Virtual Commerce (PWC, 2022)
  • Supply chains model upgrade (PWC, 2022)

Statistics

The total value of UK retail sales in 2022 was £421 bn (Retail Economics, 2022)

3.0M people employed in UK retail in 2020 (Retail Economics, 2022)

81% Online retail sales growth in 2021 vs. 2019 (Retail Economics, 2022)

35% of final consumers ‘probably or definitely would’ use a hybrid store – combining the convenience store with a restaurant/ coffee shop (TWC, 2021)

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