UK businesses are under continued pressure from several angles. Material shortages, rising energy costs and record levels of inflation are all affecting rates of trade.
But, what happens if a drop in orders is added into the mix? And how can businesses mitigate this risk?
According to the Office for National Statistics, 46% of businesses reported “input price inflation” or “energy prices” as their main concerns (for August 2022)[1]. On top of this, a recent report from Ironmongery Direct found that, due to the nationwide materials shortage, over three-quarters (78%) of respondents have struggled to source items in the last 12 months[2]. Paint (21%), timber (19%) and steel (17%) are the materials that have been most difficult to source.
If you can’t get the materials, you won’t have consistent supply lines for customers. This can lead them to use other companies and cause a drop in your order volume. Only 52.1% of currently trading manufacturing businesses reported they were able to get the materials, goods or services they needed (in June 2022). However, another 31.8% of currently trading manufacturing businesses had to change suppliers or find alternative solutions to do so. This is almost double the average across all industries for June (16%).
The current rate of economic changes and reluctance to take and accept orders in the materials industry calls for action and an adjustment to traditional processes. Because of the shortages, tradespeople have had to delay (33%) or turn down (18%) work2. If this continues, it could have a serious impact on business finances.
Matsource can help material suppliers who have seen a recent drop in orders to quickly plug the void. How? By connecting suppliers directly with immediate buyers. Through Matsource you can easily cast your prospect net wider without incurring marketing costs or employing additional sales people.
So, if a drop in regular customer orders has left you with a sales gap or stock inventory you need to shift, now would be a good time to try a new route to market.
Start your journey with Matsource, or get in touch with the friendly team to find out more.
[1]https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/bulletins/businessinsightsandimpactontheukeconomy/28july2022
[2] https://www.ironmongerydirect.co.uk/blog/how-is-the-materials-shortage-affecting-uk-tradespeople
