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Manufacturers supplying the construction sector have been hit by a sharp decline in sales, according to new research published by inventory management specialist Unleashed.
The latest quarterly Manufacturing Health Index report, based on data from more than 600 UK firms, highlighted that small and mid-sized firms in the category saw their average sales revenue fall by 57% in the first quarter of the year, compared to a 39% drop across all manufacturing categories.
Average sales revenue only reached £209,662 – in contrast to the previous quarter when it stood at £486,638, down 66% year-on-year.
Joe Llewellyn, GM of ERP small business at The Access Group, the parent company of Unleashed, commented: “Tensions in the Middle East, including the Strait of Hormuz blockade, have created significant market uncertainty – and our data suggests this is now taking its toll on manufacturers. Having started the year on a growth footing, the first quarter of the year saw the biggest drop in sales revenue we’ve recorded since 2024. With fuel prices already up, and energy prices expected to rise later this year, the coming months could reduce confidence, increase costs, and squeeze margins even more. While many SMEs have slim buffers to weather these changes, our data suggests they’re taking steps to mitigate the impact by reducing stock on hand to protect their margins.”
