Manufacturing News – Early February 2022

The start of 2022 saw growth of UK manufacturing output and employment strengthen, as companies responded to improved new order intakes, rising backlogs of work and

addressed shortfalls in capacity. Although supply chain constraints continued to stymie growth, there were signs that these were passed their peak, a factor contributing to a

slight easing in purchase price inflation.

The seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index® (PMI®) fell slightly to 57.3 in January, down from 57.9 in December, remaining above the 50.0 no change mark for the twentieth consecutive month. The marginal dip in the index level reflected slower growth of new orders and a further easing in the rate of increase in vendor lead times.

Production volumes rose for the twentieth successive month in January. The rate of expansion accelerated for the third month running to its highest since July 2021. Increased output reflected rising new order intakes, efforts to tackle backlogs of work and a slight improvement in export demand. Some firms also noted that supply chain stresses, staff shortages and slower growth of new work had stymied efforts to raise production further.


The Welsh Government has stepped in to purchase a commercial property in Llanfyllin in Powys, paving the way for automotive parts manufacturer Marrill Group Ltd to take over the plant – securing 102 jobs and future expansion opportunities at the site.


Manufacturers call for unique targeted sector approach on Apprenticeship funding to create more high value, high growth jobs

Nearly £2bn in unspent levy funds last year as skills shortages climb

  • Special approach to levy for manufacturing sector needed to allow levy funds to be spent on wages for new apprentices
  • Allow manufacturers to spend levy funds on capital expenditure to support the delivering of high-quality opportunities
  • High proportion of manufacturing companies based in the Red Wall areas of Britain – where manufacturing can create more high-value job opportunities to help the UK level up

Britain’s manufacturers are calling today on Government to adopt a special approach to how the manufacturing sector can spend their companies’ left-over levy funds, currently expiring and going to waste. They are asking to be able to spend those funds- which amounted to nearly £2billion last year – to pay the wages of new apprentices, a move which would allow a significant boost to new young recruits into the sector.


The United Kingdom has become increasingly reliant on manufacturing imports from Asian low-cost countries over the past four years, despite supply chain disruption due to the pandemic, according to the Manufacturing Technology Centre’s inaugural UK Reshoring Index.

The index analyses two metrics – UK manufacturing output and import data from 14 Asian Low-Cost Countries (LCCs) – to track whether the UK is reshoring manufacturing back from Asia.

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