It’s not been an easy few years for the UK’s manufacturing sector. High energy and material costs, supply chain volatility, worker shortages and post-Brexit trade disruption have all contributed to creating a challenging environment for manufacturers. And that’s without even mentioning COVID-19.
The sum effect is that manufacturing output has fallen for 17 consecutive months.
But despite all of that, there is a wave of optimism making its way through the UK manufacturing sector. A recent survey carried out by trade body MakeUK and PwC found that executives at the country’s biggest manufacturing companies expected conditions to improve in the next 12 months, with growth opportunities outweighing risks in their strategic planning.
The survey also saw signs of confidence that the UK is becoming more competitive than many of its close neighbours in Europe.
Confidence and optimism are important in business. They engender a can-do attitude that is a key ingredient in driving success. But your outlook alone doesn’t guarantee success. Even if those fabled ‘green shoots’ of recovery are starting to poke through, manufacturers still face considerable challenges. Capitalising on the opportunities that do arise will require a robust strategic approach.
It’s here that accountancy services can make a difference. Professional accounting is about so much more than bookkeeping and tax returns. It’s about financial strategy, operational planning, business advisory and more, all with a view to achieving long-term financial goals.
At Xeinadin, we have a team of financial experts who specialise in the unique complexities of the manufacturing industry. Here are five ways they can help you nail down sustainable growth.
Cost Analysis and Management
Manufacturing businesses routinely face complex cost structures that make identifying and implementing cost reductions challenging, certainly in ways that are sustainable and don’t undermine productivity and long-term resilience. When margins are tight, controlling costs is critical to allowing growth opportunities time to flourish. Our team specialises in in-depth analysis of even the most volatile cost components, and in using data to make informed decisions aimed at enhancing profitability in the long term.
Financial Forecasting and Budgeting
As with cost analysis, forecasting and budgeting in the manufacturing industry is complicated by ups and downs in demand, fluctuating input costs, supply chain disruptions and more. But the temperamental nature of markets makes it all the more important to have a clear, accurate financial roadmap to work to. Our accountants will collaborate closely with you to create forecasts and budgets that accurately reflect the realities of both your business and the markets it operates in, putting numbers on your growth plans and setting parameters on expenditure for achieving your goals.
Inventory Management
In manufacturing, driving cost efficiencies is more than just a numbers game. It’s about making processes as lean as possible, with minimum waste in time or resources from start to finish. This starts with inventory management. As part of our financial planning services, we can help you implement procurement and logistics strategies that achieve optimal stock levels at all times, reduce carrying costs, and ensure output meets customer demand.
Tax Planning
Tax is another area where the burden placed on manufacturing firms is particularly complex. While tax planning is a staple of all accountancy services, the detail surrounding tax liabilities, reliefs and the various rules relating to manufacturing companies makes it a specialist area. Our tax experts have the knowledge and experience of navigating industry-specific tax incentives and deductions to help you make your business as tax efficient as possible while adhering to all relevant tax laws.
Compliance with Industry Regulations
Speaking of complying with legal requirements, the manufacturing sector is subject to many different regulations covering a long list of environmental and safety standards. Our team is dedicated to assisting you in maintaining compliance with these regulations, ensuring the smooth operation of your business without incurring costly penalties or disruptions.
To find out more about how we can help your manufacturing business, please get in touch.
