GMC’s latest sentiment pulse shows energy costs as the #1 challenge for business, flagged by nearly half of respondents so far. Despite this, overall member confidence remains solid, with interim results revealing a positive 12 month outlook among 80% of participants.
Why it matters
Energy is the most significant headwind noticeably softening optimism. Other issues, including red tape, industrial relations and skills gaps are also raised as challenges – but these respondents still remained largely optimistic. This suggests that energy cost pressures are more likely to delay or downsize near term plans even in otherwise upbeat sectors.
What members are doing
Efficiency first. Several respondents pair cost concerns with productivity solutions (e.g., automation/ Industry 4.0, process upgrades) to offset operating expenses.
Selective optimism in energy exposed industries
One respondent noted that despite cost inputs rising there was near term upside due to changing market dynamics resulting in increased margins.
If you have not already shared your views, please click here to complete a short Manufacturing Sentiment Survey. Survey closes Monday 9 March.