Metals sector optimistic despite international trade, energy and labour challenges

Rising energy prices, the impact of life after the EU and labour shortages continue to be the main challenges facing the UK metals sector according to a new report due to be launched next week.

Nearly a quarter of firms in the UK Metals Council’s State of the Metals Industry in the UK 2023/24 survey admitted to adjusting supply chain strategies or sourcing alternatives, whilst just under a third want enhanced Government support to navigate trade barriers and custom procedures in the wake of Brexit.

22 per cent of manufacturers are also looking for improved energy supply contracts to bring prices down to more affordable levels, with just 31 per cent of businesses saying that they have an effective recruitment strategy in place for filling the well-documented labour gaps.

There were positive sentiments in the report, which will be officially published during the opening address at the UK Metal Expo in Birmingham on September 13.

Despite the widespread challenges, 70 per cent of respondents are optimistic or very optimistic about future business prospects, underlining the resilience of the sector and its ability to innovate.

Rachel Eade MBE, chair of the UK Metals Council, commented: “We touch metals every day, whether that is in our homes, in the cars, planes and trains we travel in, the medical devices we rely on, as well as tools and machinery used for their production.

“Importantly, it is now recognised that metals can be infinitely and readily recycled into new parts, something that cannot be said for many other materials in modern life – we need to value metals more as we move to a Net Zero economy.

“Foundation industries will continue to play a critical role in the way we all live, and this vital sector needs a voice to ensure that the Government understands the journey we are on.”

She went on to add: “This is why we came up with the State of the Metals Industry in the UK Report, a unique opportunity for us to canvas the views of primes, metal producers and those in the downward supply chain.

“The issues they are facing span from supply chain disruption because of Brexit to availability of raw materials and how they can mitigate the cost of energy – a key issue when you consider levels of consumption in our industry.

“Skills and the ability to get new people into our sector is also a challenge that is holding many of them back as they look to support the UK’s desire to move towards Net Zero. We’ll be highlighting this to Government at the UK Metals Expo next week.”

By Matthew Neville – Senior Correspondent, Bdaily

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