September 2022
Featured in this insight: Electricity, Gas, Manufacturing, engineering & industrial
32% of UK manufacturers state their energy bills have more than doubled in the last year: A survey into how manufacturers are dealing with the rising cost of living, and more specifically, rising energy bills has uncovered that a third have seen their energy bills increase by over 100% in the last 12 months.
The study by Make UK polled its members on the changes to their energy usage due to rising prices. The survey also found that 42% of respondents said their energy prices have doubled since summer 2022.
These rising costs are worrying to the industry, with six in ten of those surveyed saying their business has been threatened by the changes. Furthermore, over half of manufacturing firms are expecting costs to double again over the next year.
The impact of such rapid increases to energy prices has already shown within the industry, with 12% of manufacturers stating they have already made job cuts as a result.
When looking at other issues the manufacturing industry is facing, Make UK found that 60% of industrial emissions in the UK are from the sector; meaning manufacturing firms are a big part of the Government’s net-zero plan.
To help combat the issues facing the manufacturing industry, 27% of the manufacturers polled said they are planning to implement their own energy supply onsite; therefore, reducing the company's energy bill.
Stephen Phipson, Chief Executive for Make UK, said: "As energy bills spiral out of control, manufacturers are working tirelessly to find ways to reduce consumption, putting in place as much as they can afford in terms of building improvements and installing renewable sources of energy. Government must step in to help struggling businesses to pay what are now exorbitant energy bills.”
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