UK clothing manufacturers are riding high on a wave of newfound confidence, as figures reveal a dramatic uplift in sales revenue and purchasing.
Fashion manufacturers – which includes footwear and accessories – saw the fourth biggest jump in sales revenue out of all the 12 manufacturing categories analysed. It also saw the second biggest rise in POs. Revenue and POs were both up by 88 percent across the manufacturing sector – signalling high confidence among consumers, retailers and other businesses.
The report also shows that clothing manufacturers are buying more inventory in anticipation of further orders. It comes as consumer confidence in Q3 2024 reached its highest level in five years rising to 7.9 percent.
Social media is a big driver for sales with 42 percent of consumers buying fashion goods through it in 2023. Instagram, Facebook and TikTok trends are also influencing fashion buyers.
Joe Llewellyn, GM of Cloud ERP at The Access Group, the parent company of Unleashed, said: "This uptick in sales revenue and purchasing bodes well for the manufacturing industry. "Firms are buying more inventory – and while this might bring back bad memories of post-Covid disruption, when manufacturers were forced to adopt a 'just in case' strategy – it's actually a positive sign in the current climate.
"Lead times remain low, so the orders we currently see flowing through the supply chain look like genuinely robust business confidence. "It will also be interesting to see what impact the recent Autumn Budget will have on the wider manufacturing industry. On the one hand, business leaders have warned that rises in National Insurance, minimum wages and business rates will hit them hard. However, the government has pledged to invest in housing, public infrastructure, clean energy and technology, which could provide a welcome boost to manufacturers in the construction, energy and electronics sectors."
