money.co.uk<\/a><\/strong>, which spoke to 25 business leaders from the manufacturing industry to gain insights into how coronavirus has affected them.<\/p>\n\n\n\n91% of the manufacturers interviewed experienced a dip in output and 66% have witnessed a slump in productivity. But despite the fact that 75% of those manufacturers have furloughed staff, many have found new ways to keep production going.<\/p>\n\n\n\n
Like many UK industries, manufacturing has been hard hit by the ripple effect of COVID-19. <\/p>\n\n\n\n
Uncertainty breeds caution, with many businesses forced to pause their operations. The knock-on effect for manufacturers has been profound. <\/p>\n\n\n\n
A staggering 91% of the manufacturers interviewed reported a dip in output since lockdown restrictions were put in place, according to money.co.uk\u2019s research.<\/p>\n\n\n\n
Perhaps unsurprisingly, given the slump in output and general air of uncertainty, two thirds of the manufacturers admitted that staff productivity has been badly affected by the crisis. <\/p>\n\n\n\n
These sobering statistics go a long way to explaining why a massive 75% of the manufacturers interviewed had been forced to use the government furlough scheme to protect the livelihoods of their personnel in the longer term.<\/p>\n\n\n\n
Changing work practices keep industry rolling<\/strong><\/p>\n\n\n\nAs well as this quantitative data, money.co.uk also gathered qualitative data from a sample group of UK manufacturers to find out how they continue to operate whilst still protecting their staff from the threat of COVID-19. The responses from the manufacturing community were as varied as they were illuminating.<\/p>\n\n\n\n
At one end of the spectrum, a food manufacturing plant boss said they had no choice but to \u2018close all operations\u2019. <\/p>\n\n\n\n
However, for one valve manufacturer, a can-do attitude of \u2018masks and smiles\u2019 was proving enough to keep the wheels of industry rolling. <\/p>\n\n\n\n
For the vast majority of manufacturers though, working from home and rotational shift patterns for shop floor workers have proven the most effective measures.<\/p>\n\n\n\n
\u201cThose that have the possibility to work from home do so,\u201d said one steam equipment manufacturer, \u201cand those working from the manufacturing facility undergo a quick health screening prior to entering the building.\u201d Elsewhere, other effective strategies included shielding over-60s, reduced staffing levels, split shifts, consolidated shipments and furloughing half the workforce at any one time.<\/p>\n\n\n\n
For a specialist sensor manufacturer at least, the crisis has presented an unexpected opportunity. <\/p>\n\n\n\n
\u201cWe are soon to implement an online webinar and training platform for our customers in reaction to COVID-19,\u201d they said. \u201cThis may actually prove to be a long-term service for customers if it is successful. We would not have done this had COVID-19 not forced us to respond to the ban on face-to-face customer meetings.\u201d<\/p>\n\n\n\n
Cash flow the main concern for manufacturers<\/strong><\/p>\n\n\n\nMoney.co.uk\u2019s research also shed light on the biggest challenges currently facing British manufacturers. <\/p>\n\n\n\n
Unsurprisingly, \u2018cash flow\u2019 and a \u2018drop in sales\u2019 were among the chief concerns, with one valve and instrumentation supplier even revealing that customers were actively withholding payment on pre-crisis invoices, until normal business resumes.<\/p>\n\n\n\n
For others, worries extended beyond the stress of money woes into more practical areas. These concerns ranged from \u2018international shipment delays and costs\u2019 to \u2018reduced air travel impacting cargo space availability\u2019, as well as key contacts being unavailable through furlough and the constant pressure of trying to ‘do the right thing’.<\/p>\n\n\n\n
Top five learnings from manufacturing business leaders<\/strong><\/p>\n\n\n\nBased on our research, money.co.uk has summarised the top five activities that our manufacturing business leaders will be investing in, to ensure their operations can continue throughout this crisis and beyond.<\/p>\n\n\n\n
1.Use this time to engage with your customers and understand what their future pain points are likely to be – develop product and service offerings that specifically address their needs<\/p>\n\n\n\n
2. With exhibitions and face-to-face demonstrations off the agenda, turn to digital media to showcase your products and capabilities<\/p>\n\n\n\n
3. Understand how technology can be utilised to provide a virtual presence in your customers plants and facilities<\/p>\n\n\n\n
4. Segment your customer base and understand which customers have vital operations that you need to assist with<\/p>\n\n\n\n
5. Plan financially and understand what help is available to you from the government to navigate this crisis.<\/p>\n\n\n\n
If you are worried about your business\u2019 financial position and cash flow, money.co.uk\u2019s business interruption loan guide has all the answers you need to gain access to vital government aid during the COVID-19 crisis.<\/p>\n\n\n\n
The experts at money.co.uk have also created a coronavirus hub with up to date information on a variety of personal and business finance guides.<\/p>\n","protected":false},"excerpt":{"rendered":"
The main problem about manufacturing during the coronavirus pandemic is not social distancing necessarily, but keeping workers motivated during the slowdown. That\u2019s according to new research by the free online comparison service money.co.uk, which spoke to 25 business leaders from the manufacturing industry to gain insights into how coronavirus has affected them. 91% of the …<\/p>\n","protected":false},"author":1,"featured_media":17010,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[199],"tags":[7948,8415],"class_list":["post-17009","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-news-views-and-opinion","tag-covid-19","tag-money-co-uk"],"yoast_head":"\n
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