Diffuse inflation pressures


The geopolitical climate has become more volatile in recent times, putting pressure on global supply chains and triggering inflation. For manufacturers, this has led to a build-up of inflationary pressures, all of which need diffusing now.

Cost pressures affecting the price of commodities, energy, transportation and labour are reaching boiling point for manufacturers and many are being forced to pass on price increases at the same time as reducing operating margins. Research conducted recently by the CBI confirms that four-fifths of UK-based manufacturers expect to pass on price increases to their customers in the coming months.

With UK inflation running at a 40-year high, staying one step ahead of cost increases and protecting business viability has become an ongoing concern for many manufacturers. Energy-intensive industries and those that source raw materials or components globally have been particularly badly affected, due to exponential increases in the price of oil and their impact on energy and shipping costs. At the same time, rising demand across many markets is forcing manufacturers to take on the extra strain of ramping up production.


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