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British manufacturers are facing their biggest profits squeeze since the financial crisis, a survey warns.
Research by Insider Pro found that firms had been hammered by the pandemic and red tape related to Brexit.
Suffering: Research by Insider Pro found that firms had been hammered by the pandemic and red tape related to Brexit
Its survey of nearly 1,500 small and medium-sized manufacturers found that this year revenues are expected to tumble by one tenth and profits to halve.
They also face a painful cash squeeze as uncertain demand makes it hard to plan stock purchases and nervous suppliers demand faster payments and recall loans.
UK manufacturers in cash scramble as Covid and Brexit dents profits
UK manufacturing revenues are set to fall by a tenth this year, according to Insider Pro.
UK manufacturers are suffering a triple whammy of lower sales, declining profits and a “painful cash squeeze”, according to new Insider Pro research.
Insider Pro has analysed the accounts of almost 1,500 small and medium-sized manufacturers, which is around a quarter of the industry’s UK workforce.
Lower sales
Even before the pandemic stuck and Brexit settled in, sales growth stalled across all major sectors in 2019/20.
The picture was worsened since, despite recovering some lost ground from its low point during the first national lockdown.