The industry has witnessed several significant challenges in the past few years, and sentiment among UK manufacturers has been deteriorating.

To navigate challenges and position themselves for growth, manufacturing businesses should monitor several developments that could impact the industry this year and adjust their risk management practices accordingly.

Technological Innovation

The sector’s latest innovations focus on Industry 4.0 technology, which includes AI and other digital solutions that help automate manufacturing processes. As technology advances, manufacturing employers should stay informed about the latest developments and consider integrating these solutions.

Failing to do so could put them at a disadvantage against competitors and potentially lead to lost business opportunities.

Cyber security exposures

As industry technology advances, potential cyber attacks are becoming an increasingly significant risk. Businesses are growing more reliant on technology to conduct operations, and rapid advancements are outpacing the development of protective software.

This gap may leave business systems vulnerable to cyberattacks, potentially causing disruptions and costly losses.

Supply Chain Concerns

Manufacturing inventory shortages and sourcing challenges for raw materials are likely to remain an issue for the foreseeable future.

Raw material scarcities can reduce supply chain transparency, leading to communication breakdowns regarding available inventory. Secondly, delayed raw material deliveries may extend production timelines and postpone the transportation of finished goods, further increasing operational costs.

Labour Challenges

The industry continues to face skilled labour shortages, with 75% of manufacturing businesses identifying this as their most significant barrier to growth.

If left unaddressed, these labour challenges could increase the risk of workplace injuries and employers liability issues.

What to do moving forward?

From cybersecurity risks and labour challenges to employer and product liability concerns—does your manufacturing insurance policy protect your business?

At BEAM Insurance, we specialise in commercial insurance and offer a free, no-obligation review of your current policy. We take the time to understand your manufacturing business and use our wealth of knowledge and experience to find an insurance policy that meets your needs.