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UK sports and recreation manufacturers are riding high on a wave of newfound confidence, as figures in a new report reveal a dramatic uplift in sales revenue.
Small and mid-sized firms saw their average sales jump by 52% in the third quarter of this year. However, firms are trailing behind with purchase orders (POs) dropping by 7%, according to a report from inventory management software provider Unleashed.
While sports manufacturers were the only manufacturing category to see POs drop, they saw the 9th biggest jump in sales out of all the 12 categories analysed.
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 most sectors are buying more inventory in anticipation of further orders.
It comes as consumer confidence in Q3 2024 reached its highest level in five years rising to -7.9%. The global sports market is also predicted to grow by 7.3% in the next 3-5 years, with women’s sports revenue set to skyrocket by 85%.
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 recent 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.”
