2 minute read
CHAIRMAN’S COMMENTS
THERE IS ALWAYS A WAY AROUND AN ISSUE.
During 2022 the industry recorded solid demand for steel requirements and this increase created supply bottlenecks. This demand continues that is resulting in continued supply issues.
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Prices for steel sharply increased during the first quarter of 2022 that peaked after the Russia’s invasion of Ukraine that happened in February.
Some of the UK steel stockholders and service centre’s have been able to purchase materials and lower costs and sell them at much higher prices. This opportunity has given some of the stockholders and service centre’s a much healthier balance sheets.
Unfortunately, because of the sharp rise in energy and commodity prices these healthier balance sheets were short lived for steel processors who were not able to pass on these increased costs.
For example many businesses that supply construction and automotive industries would have agreed fixed contracts that gives little flexibility to pass on some of these price increases.
It can be seen that currently steel and material sales are increasingly being affected by the sluggish economic performance along with high interest rates and inflation.
UK manufacturing businesses that are dependent upon the automotive industry have seen lower demands for products along with deferred projects that was caused by supply chain issues.
The payments are currently taking up to 90 days on average and these delays have started to increase. This adverse trend may continue well into 2023. The credit risk to the smaller businesses is increasing while they face higher overhead costs.
In some sectors there has been seen deteriorating demands leaving some service centre’s with high levels of stock that could make them vulnerable,
It is believed that business failures could increase in the coming twelve months as a result.
Facing steel supply issues along with high energy costs some manufacturing companies have taken a look at themselves. It can be seen that a proactive and forward-thinking business can find solutions that will enable them to continue to supply their customers with products that are delivered on time and at the acceptable cost.
This is a credit to these companies that have embraced these challenges and this proves that with the correctly focus management team and workforce nothing is impossible to the determined UK manufacturing businesses.
Barry Smith - ISME Chairman
Page 2. ISME Skills Competition
Page 3. President’s Notes / Chairman’s Comments
Page 4. Principle Officers
Page 5. Aeromat 2023
Page 6. Secretary’s Notes
Page 7. John Davis Biography
Page 8. Toolmakers For The Future Of The Sheet Metal Sector
Page 9. JCB Factory Visit
Page 10. Eden Invests In New BRUDERER High-Precision Press
Page 14. AMRC Apprenticeship
Page 16. Skillcraft Products
Page 20. Design Tips To Sheet Metal Parts Concept
Page 23. FEV and ITL Develop Innovative Battery Housing Demonstrator For E-Vehicles
Page 24. Precision Tooling Academy
Page 26. AP&T and GEDIA Takes Press Hardening To a New Level
Page 29. ISME Gold Medal Winners
