UK — The latest Contract Manufacturing Index in the UK shows that the subcontracting market grew strongly in July and August but fell back in September amid concerns over material, staff and transport shortages.
The Contract Manufacturing Index in the UK reflects underpinnings of a sound recovery in the market being held back by uncertainty caused by supply chain issues.
The supply chain disruptions faced by British manufacturers mean that suppliers were unwilling to quote without knowing what their costs would be, while buyers are hesitant about placing orders due to uncertainty over demand and pricing.
Accordingly, the Contract Manufacturing Index for the third quarter of 2021 stood at 117, a 52 percent increase on the previous quarter and just slightly (five percent) down on the equivalent quarter in 2020 when the market bounced back after the first Covid-19 lockdown.
The strong growth in July and August followed by a falling back in September mirrored the results seen last year. The CMI of 78 for September was comparable with the overall CMI of 77 for the second quarter of this year.
The Contract Manufacturing Index shows the value of the market for contract and subcontract manufacturing services for machining, fabrication and other processes.
(Source: Qimtek)
The CMI is produced by sourcing specialist Qimtek and reflects the total purchasing budget for outsourced manufacturing of companies looking to place business in any given month. This represents a sample of over 4,000 companies who could be placing business that together have a purchasing budget of more than £ 3.4 bn and a supplier base of over 7,000 companies with a verified turnover in excess of £ 25 bn.
The baseline for the index is 100, which represents the average size of the subcontract manufacturing market between 2014 and 2018.
The strongest sector in the third quarter was Industrial Machinery, which was up by more than 150 percent on the previous quarter. Construction and Construction Equipment also saw strong growth as did Consumer Products and the Food and Beverage Sector.
Conversely, demand dropped significantly in the Electronics, Furniture and Agricultural Sectors.
In terms of process, fabrication accounted for 53 percent of the market (47 percent in Q2), while machining dropped to 36 percent of the market (44 percent in Q2).
Other processes, including moulding and contract electronic manufacturing, accounted for the remaining 11 percent.”
Stand vom 23.03.2021
Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.
Consent to the use of data for promotional purposes
I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planckstr. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here
Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.
In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here.
Right of revocation
I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://support.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.