According to a Cumbrian adviser, a "near perfect storm" of economic factors is battering the UK's manufacturing industry, but there are signs of a potential turnaround in the coming months.
This is according to Ginni Cooper, a manufacturing partner at accountancy and business advisory firm MHA, the UK independent member firm of Baker Tilly International.
She was speaking following the release of the S&P Global UK Manufacturing PMI (purchasing manager’s index) data for January 2025.
The index rose to 48.3 last month from the 47 reported for December 2024.
Figures above 50 indicate an expansion of the manufacturing sector compared to the previous month, while figures below 50 indicate contraction.
Ms Cooper said: "Although the rate of decline in manufacturing output has thankfully eased slightly according to the PMI, the sector remains in a fragile state and is currently facing a near perfect storm.
"Increasing labour costs, weak demand in the UK and the EU plus concerns about future tariffs from the US do not make for a happy picture.
"Price increases for customers are unfortunately inevitable."
According to Ms Cooper, many of MHA's manufacturing and engineering clients were now prepared for the increased costs set to apply from April.
However, she highlighted that provided no further significant tax changes are introduced, companies would be able to plan for the future with confidence and stability.
She said: "The sector has a reputation for innovation and battling through difficult times.
"The imminent launch of the long-awaited Industrial Strategy in late March, which we hope will galvanise the sector, and the expectation of interest rate cuts throughout the year in the UK and the EU also suggest there are better times ahead for manufacturers."
Although, Ms Cooper said many manufacturing firms would be asking when this was likely to be.
She said: "An interest rate cut this Thursday would be a helpful start."
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