It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Sam Kirk, the CEO of Clockpress Holdings, the parent company of J-Flex Rubber Products and Composites Evolution.
In recent years the phrase “cautiously optimistic” has been mooted, however as we head into 2023 it feels more cautious than optimistic.
For SMEs in manufacturing, there are still plenty of supply chain related challenges to overcome in the New Year.
Like many sectors and households, the cost of energy could have a considerable impact on manufacturing output, and although the government support provided some relief, many will be eager to see what happens once that scheme comes to an end.
The raw material market remains volatile in certain areas with whispers of further shortages or price increases to come. This feels like history repeating itself – certainly over the last 2-3 years – and at times it’s felt like cartel-type behaviour by the multi-billion-dollar corporations producing the raw materials.
There is hope that transport costs – whether that’s sea, air, or road – will start to return to more normal levels soon, and despite the price at the petrol pump gradually reducing, many of the “temporary surcharges” remain in place.
Cashflow is also likely to be a major issue for SMEs next year. In addition to the challenges highlighted above, many businesses like ours have increased their employment costs in 2022 whether that be pay rises, bonuses, or cost of living payments. Whilst some will be able to absorb those increases, plenty of firms are still recovering from the impact of the pandemic which means that further price increases are likely next year.
It’s not all doom and gloom though! That cautious approach presents opportunities and that’s exactly why my business partner, Chris Barnes, and I set up Clockpress Holdings. Our ambition is to invest in and/or acquire Midlands-based SMEs in the manufacturing sector, and we are always looking for those opportunities to expand our portfolio of businesses.
