UK manufacturing job losses highest level in 7 years

Jan 7, 2020
Author: Craig Burton
Craig acts as commercial partner for a wide range of corporate and non-corporate clients. He is also responsible for maintaining technical standards throughout the firm.
manufacturing

UK manufacturing job losses are at highest level in seven years 

The UK manufacturing industry cut jobs at their highest ever rate in November, more than any other month in the past seven years. According to data from HIS Markit/CIPS Purchasing Manager’ Index (PMI) survey the rate of job losses in the manufacturing industry hit the highest level since September 2012.

The survey found that uncertainty around Brexit meant that companies were attempting to cut cost and redundancies were made. The manufacturing sector was hit badly because many companies ordered in supplies before the original October 31st Brexit deadline. This meant that companies were still using these supplies and are not purchasing new ones. Therefore, manufacturers have scaled back production as order intakes reduced and less staff were needed.

The HIS Markit/CIPS Purchasing Managers’ Index for manufacturing fell to 48.9 in November anything below 50 suggests that a large amount of business are decreasing in output. It is this decrease in activity that has resulted in a large amount of job losses.

Chris Hill, Hawsons Partner, commented: “Since the Conservatives won the recent General Election with such a large majority there is now much more clarity on Brexit as it now looks extremely likely that we will leave on or before January 31st 2020. This is great news for manufacturers as this offers more stability for the manufacturing industry as companies will no longer be stockpiling supplies”.

How can we help    

At Hawsons we have a dedicated team of specialist manufacturing accountants at our offices in Sheffield, Doncaster, and Northampton. Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by the manufacturing and engineering businesses means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.

If you would like to book a free initial meeting with us click here.

If you would like to find out more information about our manufacturing accountants click here.

More from our manufacturing experts

You can find all of our latest manufacturing sector news and newsletters here.

If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.

Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.

Free initial meeting

Craig Burton

Partner, Sheffield

cmb@hawsons.co.uk