Small and mid-sized construction manufacturers in the UK are standing strong as new figures show profitability has increased, despite other sectors struggling.
Building and construction manufacturers’ profitability increased by 12.8% this fiscal year, although revenue declined by 9.8%. Despite a drop in sales, they were one of the few manufacturing categories analysed who improved profit margins. Industrial manufacturers were down by 25.6%, electronics by -11% and beverages had the greatest decline of almost 30%.
On average, profitability across the manufacturing industry declined by 9.18% this fiscal year, despite sales performance rising by 9.16%.
The figures were revealed in the latest Manufacturers’ Health Index by inventory management software provider Unleashed. The figures are compiled quarterly based on data from purchases, sales and stock movements among SME manufacturers across the UK, Australia and New Zealand.
However, some sectors are powering through including energy and chemical manufacturers who came out on top with a 31.37% jump in profitability according to Unleashed’s data, followed by furniture manufacturers at 21.89%.
Other signs of improvement came from the personal care sector where Q2 profitability was up 95.63% on Q1.
Sharp drop in quarterly sales revenue for UK manufacturers
UK sales performance also dropped sharply this quarter compared to the overall upward trend. Compared to Q1 2024, total revenue declined by 22% in Q2 2024.
Electrical and electronic component manufacturers’ revenue declined by 44% – the largest drop in revenue in Q2 2024. Building and construction manufacturers weren’t far behind with a revenue decline of 43%.
Clothing and footwear manufacturers were the only industries to see an increase in revenue of 5% in Q2 2024.
Despite profitability concerns, the industry has cut lead times down to an average of 23.5 days – the lowest level recorded.
View the full Unleashed Manufacturing Health Index.
