Pentagon Plastics | Noticing the Impact of Economic Challenge | Blog
Here at Pentagon, we are well versed in delivering the positives surrounding UK manufacture and our business. We don’t often (like many people) talk about the struggles and challenges we face.
There is undeniably a heavy grey cloud over the rapidly shrinking UK economy just now, a culminating haze of Post COVID, and Post Brexit, impacts of war, increased inflation, the rising cost of living, and lack of employment resources. This weighted mix of issues is enough to make the most grounded of people feel a little heady!
It would be wrong not to acknowledge the multitude of businesses where the lasting effects post-COVID proved too much to bear, and they have had to cease trading. It would also be wrong to say that we are sailing through the challenging economic landscape that we all now must navigate.
The tooling arm of our business is buoyant just now, manufacturing tooling for customers with their moulding facilities. Still, as anyone in the industry knows, tool manufacture is often a feast or famine. Production, however, is notably quiet, with order books currently looking lighter than we would like over the coming months. Indeed, this could all change at the drop of a hat, but just now, the remainder of the year looks quiet compared to past years (even compared to COVID years!).
Although customer communication is still flowing freely, demand for production has certainly dropped rapidly in recent months. As with any supplier, you are only ever as busy as your customers, given the expanse of industries we serve, which shows how far-reaching the economic quell is reaching. No one sector is stand out as engaged compared to another. Where new projects are being quoted, price is key to getting a project over the line to order, but the cost of raw materials continues to rise and leads times to become longer. Longer there is little we can do not to pass these rising costs on to our customers. Even the powerful negotiation skills of our group buyer are making little movement on costs!
Anyone who has worked with us will know that we are very forthcoming with cost-saving suggestions for both mould tooling solutions by way of ease of manufacture and component design, looking at ways to take out some of the material cost throughout production. Our level of customer support is something that we pride ourselves on.
The continually rising costs across both personal and business activities are changing our business outlook and making us more cautious about where business funds are best spent. While ensuring overheads and essential materials for manufacture continue to be met, we are taking a more careful approach to spending in other areas of the business. We have continuously operated under measured and considered spending. Still, just now, the reigns must be held a little tighter as we ride out this turbulent economic storm while still maintaining investment in the right areas to support growth.
Although current times are proving a challenge on both personal and business levels, we remain safe in the knowledge that we are continually in a state of flux. We know that the landscape will inevitably continue to change but whether it is for the better or delivers further challenges for society remains to be seen.
Let’s not pretend we are operating in a pre-COVID world and everything is going fine; let’s open an honest conversation and put our hand up and say it’s a rough ride in business just now.
Read more news from Pentagon Plastics Group here.
Pentagon Plastics Group
+44 (0) 1403 264397
Website
Email
