Energy costs showing a dark future for Manufacturers

The impact of the incredible increases in energy prices have affected everyone, from households to businesses, and while we remain hopeful, the future is looking concerning.

While the new scheme announced by the house of commons this month will aid a lot of manufacturers, some say this won't be enough to tackle the soaring costs.

It has been reported that 42% of manufacturers have said that their electricity bills have increase 100% in the last 12 months, and over half of companies expect their costs to increase further over the next 12 months. It has also been reported that a worrying 12% of manufacturers have already made job cuts as a direct result of increased energy bills.

The UK is drastically falling behind their EU counterparts when it comes to offering help for the industry to cope during these difficult times. The Italian Government have reduced levies on gas & electricity bills, reduced VAT and introduced Tax credits for energy intensive industries, which is leaving a sour taste in the mouths of British Manufacturers.

This argument is a fairly common one, with many believing that the SMEs are the ones that are constantly being left behind. With cash remaining tight, and companies still dealing with the fallout from Covid-19 and Brexit, supply chain issues and the general lack of help from governments, it leaves you thinking, what's next?

UnitBirwelco CEO Cy Wilkinson commented: "With energy costs for business and households tripling in some cases, any support from Government is welcome. The support won’t be enough for some businesses, and there will be some shocks to come. I hope that those that can whether the current storm come out stronger on the other side"

As a business that is still seeing the effects of supply chain delays, the aftermath of Covid-19 and Brexit, we agree that more needs to be done by governments we are confident that the future is bright.