27.01.25

It is no secret that the last few years have been challenging for manufacturers, with several factors - including an energy crisis - creating a perfect storm for the costs of doing business to increase.

While the record highs of 2022’s crisis may have abated for most, manufacturers are still dealing with high gas and electricity prices, and some businesses are struggling to meet their energy needs. 

It is those with a clear energy procurement strategy in place who were - and are - better placed to weather these storms, but with one in five manufacturers having still not put such a plan in place to protect them from the volatility in Britain’s energy market, and one in three still yet to revise their existing one post-2022, a number of firms could be in a vulnerable position for any future crises which may arise.

To help manufacturers future-proof their business, Make UK, in partnership with Inspired, has published Energy Procurement: The Cost of Complacency.

With reference to our latest research and case studies, we outline the steps that firms can take to establish - or make the most of - an energy procurement strategy, as well as how Make UK and Inspired can help you align your strategy with your company’s wider goals and ambitions.

Energy forms a huge part of UK manufacturers’ input mix, subsequently accounting for a large proportion of production costs. With differing playing fields for UK producers when compared to those abroad, even in our closest neighbours within Europe, it’s little surprise that the sector struggles to remain competitive even where productivity enhancements elsewhere have been sought. 

“Compounding the risk, the significant proportion of the sector that is exposed to what is effectively the ‘wild west’ of energy markets in terms of regulation and support without a formal strategy in place further highlights the need for intervention lest we see the UK’s production base continue to erode.

James Brougham
Senior Economist, Make UK

While energy prices are much lower than they were during the peak of the energy crisis, they are still around twice the pre-pandemic average. This is not a time to be complacent.

“Given how sensitive the market remains, manufacturers need to review their strategies and ensure they are aligned with their goals and the behaviour of the energy markets. These strategies should be dynamic and regularly revisited to ensure they continue to achieve their goals and provide protection in an ever-changing market.

Dan Hulme, Inspired
Dan Hulme
Head of Sales: Key Accounts, Inspired

Watch the Make UK and Inspired PLC Energy Procurement webinar discussing strategies to help manage costs and stay prepared.

View the webinar recording here