Collapse in demand for manufacturers, study suggests
Britain's manufacturers have suffered a "collapse" in demand because of the impact of the global lockdown amid warnings that conditions are unlikely to return to anywhere near normal for some time, a new survey suggests.
Research among almost 300 firms by manufacturers' organisation Make UK showed three out of four had seen sales fall.
One in five said orders had slumped by more than 50% and a similar number had furloughed workers.
Make UK warned the extent of the fall is likely to mean the recent Office for Budget Responsibility (OBR) forecast of a 55% reduction in manufacturing output in the second quarter of the year is likely to be an underestimate.
Make UK chief executive Stephen Phipson said: "While many manufacturers continue to operate and supply our food, vital medical equipment and PPE, there is no disguising that for the sector overall these are deeply worrying times.
"All the indications at the moment indicate that, even if a gradual easing of lockdowns begins soon, the impact of this shock will continue to hit companies and livelihoods for some time to come.
"As such, government may need to be flexible with its future support schemes in the same way that industry is going to have to be flexible with its recovery plans."
The survey also showed that taking staff off furlough is likely to be a prolonged process, with a third of firms saying they will wait to see orders increase first.
Make UK said the job retention scheme will need to be extended and be more flexible to support a recovery.
Published: by Radio NewsHub