Page 6 - RHP IT

INDUSTRY

UPDATE...

UK manufacturing PMI surges to a

record high as work intake accelerates

CONDITIONS IN THE MANUFACTURING SECTOR IMPROVED AT AN UNPRECEDENTED RATE IN MAY, AS
OUTPUT GROWTH STRENGTHENED AND NEW ORDERS ROSE AT THE QUICKEST PACE IN SURVEY HISTORY.

he seasonally adjusted IHS Markit/CIPS “The corollaries of this strong upsurge in industrial individual product can be manufactured to a bespoke
Purchasing Managers’ Index (PMI ) rose to activity are increased strain on supply chains and a build- customer specification, on demand. Focusing on business-
65.6 in May, up from 60.9 in April, above July up of price pressures. Supplies of inputs into specific outcomes, using technology to increase agility,
T1994's previous record high of 61.0. The PMI manufacturers and finished goods on to clients are both operating multi-locally and optimising supply chains are
has signalled improvement in each of the past 12 months. being severely disrupted by raw material shortages, port proving to be key to industrial resilience.
Manufacturing production rose at one of the
quickest rates in the series history, bettered
only by those registered in August 2013 and
July 1994. Underpinning the latest increase
were record gains in new business, as
domestic and overseas demand continued to
revive. Companies linked new order growth to
rising business confidence, the further re-
opening of the UK economy and reduced
issues relating to COVID-19. david.b@atlas.co.uk
New export orders also rose at a survey-
record pace in May, amid reports of stronger
demand from the EU, the US and China.
That said, there were continued signs that while large issues, Covid restrictions, post-Brexit difficulties and “However, for every big investment, there is another
companies were seeing record gains in new export work, market forces as demand outstrips supply. Suppliers’ large, ageing manufacturing site in need of an upgrade,
the rate of increase at small firms was comparatively mild. delivery times subsequently lengthened to one of the which presents a big challenge as we emerge from the
Rob Dobson, director at IHS Markit, said: “The UK greatest extents on record, while input costs and selling pandemic. The relentless demand requires more
PMI surged to an unprecedented high in May, as record prices both rose at unprecedented rates.” machinery and more automation, leveraging hundreds or
growth of new orders and employment supported one of even thousands of sensors to produce and make sense of
the steepest increases in production volumes in the near Achieving industrial resilience data and make the best optimisation decisions. Amid all
30-year survey history. Growth is being boosted by the Mark Yeeles, vice president of industrial automation at this change and disruption, and with little opportunity for
unlocking of economies from Covid restrictions and Schneider Electric, commented: “The global economy is downtime, there’s a danger that manufacturers lose sight
ongoing vaccination programs. This is being felt across the rapidly moving from a world of dedicated production lines, of the need to upgrade and automate to ensure they
globe, as highlighted by a record rise in new export where high volumes of the same product are produced, to remain agile and resilient, in order to hit their
business during the latest survey month. a more digital, flexible and responsive world where every ambitious targets for carbon reduction.

6 INDUSTRIAL TECHNOLOGY • June 2021