Nick Atkin, Leader of Industrial Manufacturing at PwC, comments on the impact of rising fuel prices on the manufacturing supply chain.
“Through a combination of unprecedented events, including significant inflation, petrol prices across the UK hit new heights this weekend.”
“The continual increase in fuel prices is extremely complex, and is felt at every stage of the supply chain. As fuel prices continue to increase, costs are subsequently passed on at every level of supply; from the wholesale cost of materials, shipping costs, distribution costs and the price of equipment. As a result, suppliers are passing on the additional charge to the next stage of the chain, and consequently we are seeing this supply chain domino effect in action.”
“Clients are reporting that as a result of increased costs, they are adopting an increasingly conservative view of the future. The key for the manufacturing sector is that it now must continue to explore different avenues to drive growth. ESG is a key priority for manufacturers and they can look to use this to invest in long term initiatives to reduce costs and deliver more sustainable manufacturing. We need to work to drive UK manufacturing towards sustainability to ensure the industry remains competitive and resilient both in the short and long term.”
“Setting a long term strategy for sustainable manufacturing value chains is both beneficial for now as well as supporting manufacturers long term ambitions.”
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