West Country manufacturers expect sales slump and profit decrease due to coronavirus pandemic

Hundreds of manufacturing businesses in the West Country say they expect a slump in sales, profits and production for the rest of the year because of the coronavirus pandemic.

New research has revealed small and medium sized companies are concerned they may also have to cut jobs to survive.

A survey by the South West Manufacturing Advisory Service (SWMAS) and the Manufacturing Growth Programme (MGP) found:

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Phil Ion, Director of CORE Lighting near Gloucester, was anticipating a bumper year building on a business with an annual turnover of more than £1 million. Now there's no prospect of turning a profit this year.

He's furloughed his six staff, including his own wife, and can't see where the next order is coming from.

"Within the space of a week, everything just switched off," he said.

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Phil says only the extension of the Government's job retention scheme is keeping him going during the pandemic.

It is a view shared by bespoke metal fabricator Alderman Tooling in Plymouth where only half the 50 workforce are on site. Twelve people have been furloughed after sales dropped by up to 30%.

"Businesses are less confident to spend their money on new purchases and we're only going to get out of this if we build confidence," added Managing Director Karen Friendship.

"We're telling our customers we're here for them and giving confidence to our staff that it's safe to come back to work."

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Simon Howes, of SWMAS, said: “Covid-19 is having a huge impact across the region’s economy but it is particularly problematic for our sector as manufacturing cannot be carried out remotely, relying as it does on physical interaction with machinery and parts.

“However, it is heartening to see that many businesses are adapting to the situation by diversifying their processes and product ranges in all manner of innovative ways.”