UK electronic manufacturers are riding high on a wave of newfound confidence for 2025 after figures revealed a dramatic uplift in purchasing.
Small and mid-sized firms saw their average sales drop by 19% in the third quarter of last year, while the number of purchase orders (POs) placed with suppliers was up by 164%, according to a report from inventory management software provider Unleashed.
Electronic manufacturers saw the greatest drop in sales out of all the 12 manufacturing categories analysed. But it also had the biggest increase in POs.
Revenue and POs were both up by 88% across the manufacturing sector – signalling high confidence among consumers, retailers and other businesses.
The report also shows that electronics manufacturers are buying more inventory in anticipation of further orders.
It comes after consumer confidence in Q3 2024 reached its highest level in five years rising to -7.9%.
Demand was expected to jump at Christmas, after 9% of customers were set to receive electronics. Mobiles were particularly sought-after, with experts predicting that tech-giant Apple will sell 85m iPhones in Q4. Around half of Gen Z plan to make tech purchases, while businesses are rapidly adopting technologies to improve their AI and data capabilities.
Joe Llewellyn, GM of Cloud ERP at The Access Group, the parent company of Unleashed, said: “This uptick in sales revenue and purchasing bodes well for the manufacturing industry.
“Firms are buying more inventory – and while this might bring back bad memories of post-Covid disruption, when manufacturers were forced to adopt a ‘just in case’ strategy – it’s actually a positive sign in the current climate.
“Lead times remain low, so the orders we currently see flowing through the supply chain look like genuinely robust business confidence.”
“It will also be interesting to see what impact the Autumn Budget will have on the wider manufacturing industry. On the one hand, business leaders have warned that rises in National Insurance, minimum wages and business rates will hit them hard. However, the government has pledged to invest in housing, public infrastructure, clean energy and technology, which could provide a welcome boost to manufacturers in the construction, energy and electronics sectors.”