Three-quarters of respondent businesses have been impacted by labour shortages over the last year and a majority now believe the issue is a threat to labour market competitiveness, in a new survey out today (Tuesday). In its annual Employment Trends Survey with Pertemps Network Group, the CBI reports that “shortages in the labour market are having a material impact on firms’ ability to operate at full capacity, let alone grow.” Many businesses have responded by investing in training, while also increasing pay and improving their offer to staff to help retain workers and attract new recruits. The survey found that:

• Nearly half (46%) of those who have faced labour shortages in the past 12 months have been unable to meet output demands; 36% made changes to or reduced the products or services they offer, while 26% reduced planned capital investment.
• Nearly three quarters of respondents (72%) said the UK has become a less attractive place to invest/do business in over the past five years.

• Respondents were most likely to see shortages of labour (75%) and access to skills (72%) as threats to labour market competitiveness. Concern about labour costs (59%) has risen on last year and the cost of living (69%) has become a significantly larger threat. Meanwhile, concern about the impact of employment regulation (35%) has been stable.
• Seven in ten respondents (70%) thought access to labour would still be a threat to labour market competitiveness in 5 years’ time.
• In response to labour market shortages: 55% of firms reported that they are investing in training to upskill current employees; 56% are investing in base pay; 45% in improving their Employee Value Proposition; while 40% are investing more in technology/automation.

• When asked what measures government should prioritise to help ease labour shortages, 46% called for the government to introduce incentives to help businesses invest in technology and automation to boost productivity, while 44% wanted government to grant temporary visas for roles that are in obvious shortage.

Matthew Percival, CBI director for skills & inclusion said: “It is crystal clear that labour market shortages are having a material impact on firms’ ability to operate at full capacity, let alone grow. “Businesses are pulling every lever they can to attract and retain employees, but this is making productivity boosting investments like training and automation harder. “To go for growth and build a higher-wage economy we will need to ease shortages to create the conditions for higher investment. That means helping more British workers to overcome barriers into the workplace, like a lack of affordable childcare, and taking a pragmatic approach to immigration. “The Government has committed to looking at both issues which is great to see, and urgently updating the Shortage Occupations List should be the starting point. The Apprenticeship Levy stops firms investing in the skills their employees need and is in dire need of reform.” Carmen Watson, chair of Pertemps Network Group, said: “The issues we are seeing in terms of labour shortages are not new and are not going to go away in the short term. The issues are being exacerbated by the current economic climate. “Candidates are in a position to be very selective. It is not all about salary – real pay growth currently stands at minus 2.5%, taking into account inflation, so employees are feeling the pinch. As well as doing everything possible to address this pay growth shortfall,  it is about the whole package of incentives, wellbeing support and flexible working that is on offer when an organisation is seeking new employees. “The figures in this survey should be a wake-up call to any businesses who are not already taking a long, hard look at their attraction and retention policies. “We need to reach out to all the people out there. There is a wealth of untapped talent who, with the right incentives and the right training, can be a valuable resource to overcome the concerns expressed by respondents to this survey. “For companies to survive this, they need robust attraction and retention policies, with investment in training and development and a focus on diversity, equality and inclusion, as well as the environmental performance of the organisation. “There is no single thing that can be done to solve the labour issues – it involves collaboration between supply chains, businesses and recruiters to come up with longer-term, sustainable, recruitment strategies.” On future hiring intentions and the impact of inflation on pay reviews:

• A third of respondents (33%) planned higher levels of recruitment for permanent roles over the coming 12 months compared to the previous year, down from 46% last year, while 39% expected the same level of recruitment.

• Nearly half (46%) of respondents whose firms are taking action to support employees on cost of living reported bringing forward or having additional pay reviews, and 36% gave staff one-off bonus payments.
• A third (34%) of respondents reported that their organisation’s approach to the next pay round was best described as ‘giving a general increase below inflation’, significantly higher than previous years; organisations giving a pay increase in line with inflation (29%) is the lowest since 2012.
• Only 7% expected to provide a general pay increase above inflation in their next pay round, the lowest in almost a decade.

Jennifer Beckwith, CBI deputy director for employment policy, said: “One of the ways high inflation hurts households is through making it harder for employers to offer the kind of pay rises that will match the rising costs people are facing without putting up prices. It also means most businesses, and the highest proportion since we started asking the question in 2018, are now worried about labour costs threatening UK labour market competitiveness. “The Government has moved swiftly to support households and businesses on energy costs, and firms are doing what they can to find ways of supporting their staff through the cost-of-living crisis. In the months ahead, Government and business will need to work together to set the UK on a path to higher productivity – the only sustainable way to achieve long-term wage growth.” When asked what the Government should do next on the National Living Wage, the survey found that a narrow majority of employers (53%) thought that they should be focused on productivity and growth in order to increase wages across the board, while relying on the current relative target for the National Living Wage (two-thirds of median earnings) to ensure that it rises too. The Employment Trends Survey was conducted between 16 August and 1 September with 325 firms responding, prior to the Government’s detailed announcement on energy support for business and the fiscal statement.

Derby-based doughnut firm Project D has teamed up with Nottingham sweet company Treat Kitchen to combine the best of both products. This ‘match made in heaven’ was officially launched on Saturday, October 1, at the Treat Kitchen flagship store, in Nottingham’s Victoria Centre. The occasion was marked by a bumper giveaway of 500 free doughnuts, which were gone within the first hour and saw customers queueing to the doors of the main centre. Thousands more have been sold during the first full week of trading. Project D has specially crafted the doughnuts for its new permanent Nottingham concession to include Treat Kitchen’s wide range of confectionery products. The partnership agreement includes the sale of Project D’s vegan doughnut recipe, designed to complement the sweet manufacturer’s own ‘gourmet’ vegan confectionery range. Max Poynton, operations director for Project D, said: “We’re absolutely delighted to have entered this partnership and to finally have a permanent home in Nottingham city centre. “Project D has proved insanely popular with the public every time we’ve held an event in Nottinghamshire, so the deal with Treat Kitchen is simply fantastic. The store was absolutely inundated during the launch event, and trade has not slowed down in our first full week there. “Treat Kitchen holds many of the same values that we do at Project D, and it’s clear that shoppers in Nottingham love the new products. “And, with the special vegan range, combining with Treat Kitchen’s amazing gourmet range of vegan sweets, there’s something for everyone.” Treat Kitchen has allocated an impressive nine-tray display cabinet in its store to the new doughnut concession. The partnership with Project D was initially sparked by a chance meeting with Max Poynton at a Midlands business networking event. Jess Barnett, co-founder and brand director of Treat Kitchen, said: “As soon as we started chatting, it was clear that Project D had lots of crossovers with our own business. “Things like the vegan elements, which we both supplied, and the joyous, treat focus of our brands, meant it was likely to be a match made in heaven. “The hugely popular launch of our partnership represented yet another exciting product that we’re proud to add to our range. Like Project D, which has seen meteoric growth since it launched in 2018, Treat Kitchen has seen its business grow by 300 per cent over the last three years.

For World Mental Health Day (10^th October), David Wilson Homes East Midlands is encouraging open discussions about mental health in the workplace. Three employees for the housebuilder have undergone training in mental health first aid, and are now the first port of call for colleagues who are experiencing issues with their mental wellbeing. One of the Mental Health First Aiders based at the developer’s head office in Coalville, Tina White, is sharing her experiences to help spread awareness of the importance of mental health. Tina, 42, who works as an Assistant Accountant, said: “Employees were asked to come forward if they wished to become a Mental Health First Aider, and after some thought I put myself forward. “I found the training process very easy and informative, the training consisted of four sessions spread over two weeks with some additional studying online between training sessions. “There was a mixture of listening to the instructor, watching online videos and reading involved including some mini workshops where we would practice how we would approach various situations.” Tina’s training not only enabled her to learn how to promote positive mental health among colleagues, but also learn things about mental health that she wasn’t previously aware of. She continued: “It’s not always obvious that someone is struggling with their mental health and many people will mask how they feel. “It is very important to talk about mental health to break down the stigma often attached to mental health, to make it easier for people to come forward and seek help and to make it easier to for people share their experiences. I don’t think the importance has increased over recent years; I feel that we are becoming more open to talking about mental health.” Promoting the importance of mental health in the workplace is a huge focus for the developer, as raising awareness and offering resources provides a step towards improved mental health for workers in the construction sector. According to the mental health charity Mind, one in four people will experience a mental health problem of some kind each year in England; with one in six people reporting experiencing a common mental health problem, like anxiety and depression, in any given week. Tina is encouraging people to consider mental health training to help support others around them. She added: “I am proud to be a part of a great team that is there to help others in their time of need. “I feel the more people that become Mental Health First Aiders, the more open we will all be to talking about mental health.” John Reddington, Managing Director at David Wilson Homes East Midlands, said: “We are incredibly proud as the UK’s leading housebuilder to offer this mental health first aid training to our employees. Tina is a credit to the company for her enthusiasm and fantastic support to colleagues. “Our employees and their mental health are of upmost importance to us and we couldn’t be happier to be leading the change in discussing mental health within construction.”

New data, for World Mental Health Day (10 October), from HR, payroll, and finance experts MHR reveals over 6 in 10 (62%) employees believe their employer does not care about their mental wellbeing, with over half (55%) of respondents feeling pressures to hide their mental health concerns at work. Employees across the UK and Ireland are facing the detrimental affects of the cost-of-living crisis, presenting strains on both financial and mental wellbeing. When asked what triggers the most stress during the cost-of-living crisis, the rising of bills came in as the top factor at 46%, followed by 29% saying energy costs. Over a third (34%) of respondents also said that their employers providing financial support would help their mental wellbeing over more flexibility, better workloads, and stronger benefits. Prices are continuing to rise and the cost-of-living crisis is showing no sign of slowing down. With respondents showing that bills are triggering the most stress, and that financial support could help to improve mental wellbeing – financial and mental wellbeing present themselves as an intertwined problem that organisations need to tackle this World Mental Health Day. Jeanette Wheeler, chief HR officer at MHR, said: “In recent years employee wellbeing has been a top focus for many employers, but the ongoing cost-of-living crisis shows that all aspects of wellbeing should be looked after, including financial and mental wellbeing. “While many may not be able to provide additional financial support, there are other ways to reduce stress and improve mental wellbeing during this time. Be it adjusting deadlines, considering other benefits to cut costs, and simply being a sympathetic ear for a colleague. “The fact that employees feel pressured into hiding their mental health is concerning, and with some believing their employer doesn’t care about their mental wellbeing at all, shows a real division between employers and employees. “To bridge this gap, employers need to form connections with employees beyond work and prove that their mental health comes first. Having these conversations is advantageous to everyone as will enable employees to get their concerns off their chests, perhaps find a solution, or simply start to feel in a better place after talking with another person.”

The Business Gateway Growth Hub has launched a new Peer Network specifically aimed at helping early-stage business owners in Leicester and Leicestershire. The new programme, which starts on 27 October, will support the growth and development of businesses trading for over six months and less than two years. Peer Networks have been the success story of recent years enabling business owners to build and strengthen their organisations through a trusted support network. The Early Business Peer Network will be facilitated by Maria Peggs of Vispera, an award-winning growth specialist. It will provide an opportunity for early-stage businesses to share ideas, collaborate and network with fellow entrepreneurs who are at the same stage in their business journey. There will be 10 online sessions of two hours each covering topics such as:

• Start with the end in mind
• What are your foundations
• Knowing your numbers
• What resources are available to you
• Marketing channels and what is your why

This kind of programme would normally cost over £1,000 but is fully funded for eligible businesses. Find out more and book a place now.

Mental health is something we all need to be aware of in the workplace. With one in six British workers affected by problems like anxiety, depression and stress every year, it’s not surprising when a company invests in its staff, it gains rewards in staff loyalty and commitment to the job. Lincolnshire-based specialists in interior design and fit out, APSS, look at how you, as an employer, can help your staff have a more positive mental health attitude and know the risk factors. According to the Mental Health Foundation, there are signs you can spot at work:

• Being more tired than usual
• Making uncharacteristic mistakes
• Finding it hard to motivate others
• Timekeeping slipping
• Short-tempered
• Trying to isolate themselves from others
• Speeding up and becoming more chaotic
• Intruding on other people’s conversations

People talking about mental health is getting better, but it still has a long way to go. There is still the worry that they will be judged by their mental health or discriminated against for it. So as an employer how can you create the right atmosphere to help your staff with their mental health? How can line managers help? Keep Staff Active Mental health services suggest that regular exercise is proven to help those who are at risk of depression and anxiety. It can boost self-esteem, help with concentration, sleep and with generally improving health and wellbeing. As an employer, you can’t force your staff to exercise, but you can make it easier for them to do so. Allowing them an hour lunch break can enable staff to take a walk after eating lunch, or you can introduce a bike-to-work scheme, a social exercise group like running or cycling on lunch breaks or after work. There are plenty of ways to help without any physical changes to the workspace. However, there are changes within the office which can help too. Simple adjustments like Sit-Stand desks where the user can adjust the height to amend their position throughout the day. This slight adjustment has proven to help with productivity across the day. Installing a small gym in an unused room or area can help your staff get that exercise in without feeling like they are going out of their way to try and fit it in. Just 30 minutes of exercise, five days a week can really help, and an on-site gym can make it easier for them to do this on their lunch break. The Right Break Space It’s impossible to keep 100% focused all day, every day. When you work in an office, you’re often staring at a computer screen and that can be mentally exhausting. If you’re working in a customer-facing environment, it’s mentally exhausting to be putting on a happy face when you’re not feeling your best. Ensuring your staff have a good space to get away from their desks and customers will help recharge and refocus them, providing a fresh boost of energy to be more productive for the rest of the working day. These spaces could include a soft seating area, a games room, anything that is welcoming and has enough space to accommodate the staff who use it at the same time. Engage with your staff to ask them what they want in a breakout area. Would they benefit from soft seating, would they rather have a larger table so everyone can get around it or would they rather have multiple tables if it’s a larger company with lots of departments? Do they have any hobbies that could easily be incorporated? As a company, you could provide mental health days, where staff can take a day off with no questions asked to look after their own wellbeing. Simple things like taking holiday can be hard for some. They feel they still need to keep on top of work emails and deal with issues whilst they are away from the office. This does not allow them to fully recharge as they are still dealing with the stress of the office, only now they are doing it on their personal time. Creating the Right Work Environment Your staff work hard and need the right environment to be able to do their jobs. As much as APSS promotes making the workspace attractive and fun to work in, if you don’t have the basics in place, you are going to be off to a non-starter. Having an open-plan office design is great for teamwork and knowing what’s going on around you, but they can get rather noisy at times. By creating a few quieter working areas, like a bookable private hot desk, staff will have the flexibility to get away from the noise and concentrate on their project, helping reduce personal stress levels and improve productivity. Office temperature can also be a big influencer. When the workplace is too hot, staff quickly become demotivated, frustrated, and lethargic. When it’s too cold, people physically slow down, lowering productivity as well as the ability to focus, especially if they don’t have an active job. Ensuring you have the right sort of air conditioning (HVAC) system and keeping it maintained will help your workplace remain at a temperature you feel is appropriate. However, as we all know, you can’t please everyone when it comes to the temperature, and we are sure there will still be at least one person saying it’s too hot whilst another says it’s too cold. Boosting Natural Light in the Workplace Natural light is a great way to help improve motivation and well-being. By maximising natural light in the workplace, you can help reduce issues including headaches, eyestrain and blurred vision by up to 84%. It promotes vitamin D, which combats depression and diabetes amongst other things and it also helps to provide a connection to the outside natural world. Installing skylights, larger windows and curtain walling in a building can quickly become costly. However, by switching solid walls with glass partitions, you can easily expand the reach of natural light. If you’re worried about privacy, on-brand manifestations will still let the light in whilst preventing peering eyes. Simply, by better planning the space in your office, you can shuffle the layout to allow staff to have more access to natural light. In the winter, the days get shorter and it’s harder to utilise the natural light. By installing LED lighting, it reduces harsh lighting and appears as bright white light, just like daylight. It’s the next best thing to the sun. If you are looking to make changes to your workplace to help encourage a more positive environment, APSS has trained staff in space planning and design to make the most of your space. Call us today or visit our services page to see how we can help.

Midlands Connect will be awarding £50k of funding to Derbyshire County Council. This award is for the authority to make a business case to the Department for Transport for work to the A61 Corridor (South of Chesterfield). The council will contribute by matching the award, making a pot of £100k. Midlands Connect will provide the funding to research and develop a business case to submit to government and will also supply support to the local authority. This allows the council to explore all options available to improve the corridor, which may include improved access for pedestrians and cyclists or enhanced public transport provision along the route. Swati Mittal, strategic roads manager at Midlands Connect, said: “We are so pleased to be able to give Derbyshire County Council this funding and to help them make their case to government. “This scheme is exactly in line with Midlands Connect’s values and objectives for the region, and could benefit from a great variety of improvements, which we look forward to exploring with the council.” Lee Rowley, MP for North East Derbyshire, said: “I hugely welcome this additional funding that has been announced today. “We remain at a pretty early stage in terms of how to mitigate the long-term challenges on the A61 but the work that we have done locally in recent years is now starting to be recognised more broadly – including through grants such as this – and I hope it will allow us to make progress in the years ahead. Thank you to Midlands Connect for being willing to support this important work.” Councillor Carolyn Renwick, Derbyshire County Council’s cabinet member for infrastructure and environment, said: “We are grateful for the funding from Midlands Connect which will help us to develop future plans for the A61. “This busy road is important for so many people living between Chesterfield and Clay Cross, and for commuters. The road is likely to get busier as new housing developments and business growth brings more people to the area, so it’s vital we look at what we can do to manage congestion and reduce emissions. This money will enable us to further develop our plans.” The A61 corridor is a crucial part of the major road network in Derbyshire, connecting the county to Chesterfield and beyond into South Yorkshire. The area for improvement spans from the Horns Bridge roundabout in Chesterfield to the A6175 junction in the centre of Clay Cross. The road is one of the most congested in the county, with several “pinch points” at key junctions as well as Horns Bridge roundabout. During peak hours, average delays of up to twelve minutes affect travellers along the route in either direction. New housing developments are being built along the corridor and once completed their residents will benefit from the improvements. Two key construction sites in the vicinity will deliver up to 2,100 new dwellings. Improvements to the corridor would support better air quality in the surrounding residential area, which includes housing estates and schools. There are also plans to improve pedestrian and cyclist accessibility, by looking into drop-kerbs, crossing points, and cycle parking. The business case will build on the outcome of a public consultation undertaken by the council. The consultation runs from 25 July to 16 October 2022.

The time has come for “actions, not words” from politicians, says East Midlands Chamber – as a new study shows confidence is nosediving among businesses. This week, the chamber of commerce for Derbyshire, Nottinghamshire and Leicestershire will publish the results of its Quarterly Economic Survey (QES), which is delivered in partnership with the University of Leicester School of Business and gauges the health of the region’s economy, for the third quarter of 2023. Data will show a steep fall in optimism among the region’s business community for an improvement in turnover and profitability amid rising cost pressures for energy, people, raw materials and fuel. MPs return to Parliament from tomorrow (11 October) after party conference season, which followed Parliamentary recesses over the summer and early autumn for the Conservative leadership election and period of mourning following Queen Elizabeth II’s death. Chris Hobson, director of policy and external affairs at East Midlands Chamber, said: “The on-off pauses in parliamentary activity – for reasons fully understood – over the past few months have led to a bottleneck in decision-making from the top of Government. “At the same time, a cost-of-doing-business crisis has tightened its grip on firms, which are under huge pressure to get through a difficult winter and beyond. Businesses are telling us that alongside the increased costs they face, cashflow is worsening and demand for their products and services is now dampening for the first time since pandemic restrictions were removed. “We have heard lots of rhetoric from our MPs during a summer characterised by internal politics but as we enter the final quarter of the year, the vacuum of policy decisions must be replaced with actions, not words. “This will help businesses to get on with doing what they do best – creating jobs, wealth and opportunities, and helping the economy get out of the difficulties it’s currently in.” Mini-budget measures are a good start – but market uncertainty a concern Some of the announcements in Chancellor Kwasi Kwarteng’s mini-budget aimed at growth and putting money back in the pockets of companies at a time they most need it are welcomed, said Chris. But these measures – alongside a commitment to streamline planning processes, develop infrastructure and incentivise meaningful business investment – have yet to be pushed through. “If we are to truly get the economy moving again, as the Government says it wants to do, it needs to stop the log-jam of policy ideas and turn them into legislation to give businesses the confidence to invest,” Chris added. Following recent turmoil with sterling and in bond markets, he called for “clear reassurance about its plans to ensure that as a country, we are taking a responsible approach to managing our finances and aren’t viewed as a risk by external investors.” Chris added: “Further detail on the costings of recent proposals, along with anticipated growth returns and timescales for this, is now needed. “The current market uncertainty damages consumer confidence and doesn’t support those that are looking to invest in their businesses. As such, the current proposal from Government of giving further details and costings towards the end of November feels too far away for businesses to wait.”

Business output, optimism and employment all fell in September as increased uncertainty amid mounting inflation takes its toll on businesses across the UK, according to the latest Business Trends report from accountancy and business advisory firm, BDO. The latest numbers mark the first time all four of BDO’s Business Trends indices have fallen together since the first national lockdown in April 2020. BDO’s Output Index fell for the second consecutive month to 94.30, its lowest reading since February 2021 when the UK’s output was curtailed by the third national lockdown. The index now sits below the 95-point mark, indicating a move into contractionary territory for UK output. Output has been hit with shocks from both the demand and supply sides as high input prices increase costs for businesses and the cost-of-living crisis weakens consumer spending power. This has been reflected in the manufacturing and services output subcomponents which both recorded negative readings simultaneously for the first time since the lockdown in February 2021. This slump in output coupled with growing economic headwinds have driven the sixth consecutive monthly decline in business optimism. BDO’s Optimism Index saw a significant fall of 4.48 points to 96.32 in September with further decreases expected over the coming months as the impact of a recession sets in. Optimism is lowest amongst businesses in the services sector as firms grapple with the cost-of-living crisis curtailing discretionary spending, impacting the retail and hospitality subsectors in particular. Optimism across this sub-component now stands just above the 95-point contraction mark at 95.62. As a result, businesses are exercising caution and slowing their employee headcount growth in the face of these hardships. This signalled the end of a 10-month positive growth streak for BDO’s Employment Index which declined for the first time since October 2021. The index fell 1.14 points in September to 114.19 as hiring intentions reached their weakest level since Q3 2021. BDO’s Inflation Index also saw a marginal decline of 0.05 points in September but the index remains high at 119.00 points. This decline was driven by a drop in input inflation caused by falling commodity prices as global markets adjusted to a ‘new normal’ of weaker energy supplies. This outweighed the pressures from the depreciating pound towards the end of the month following the reactions to the government’s fiscal announcement. Kyla Bellingall, head of the Midlands at BDO LLP, said: “A fall across output, optimism and employment is a stark warning sign for the economy, and it’s likely that there is further upheaval ahead. “With energy prices expected to accelerate inflation towards the end of this year, and unemployment rates set to peak in mid-2023, we’re only just starting to see the recessionary impacts set in. “Clearly businesses are in a bind. They’re already facing soaring costs and with a great deal of uncertainty ahead, hiring intentions are now taking a hit too. The past few years have shown the resilience of companies in the UK, but with increasing political uncertainty they need reassurance that they will receive the right support across the next few months and longer-term.”

With businesses signing up in droves to the East Midlands Expo, register now for the long-established event! A well targeted exhibition and networking opportunity, aimed at the construction, property, business, investment, finance, professional services and related B2B markets, the crowd will descend on the East Midlands Conference Centre, Nottingham on Monday 14 November 2022 for the free to attend expo. It has everything you require for a great day of business generation, with the chance to meet more potential clients in one amazing cost effective day, than it would take months out on the road. The day, for which Business Link is a proud partner, will begin with exhibitor breakfast networking, with the exhibition opening to attendees at 9am. A seminar will take place between 10:45am and noon with BSP Consulting’s directors Mark Rayers and Tony Goddard lined up to present ‘Sustainability and how engineering plays its part’. Not to be missed, a special networking lunch (for which tickets can be purchased here) will then take place between 12:15pm and 2:15pm, and the exhibition will close at 3:30pm.

For more information on exhibiting at the event click here.

To register to attend the event for free click here.

To secure tickets for the networking lunch click here.

From property agents to developers, architects, contractors, investors, PR firms, and more, see the list of current exhibitors here.

For a long time, customers have had to visit manufacturing plants in person to place orders for the production of various items. Products also had to pass through several intermediaries before reaching the consumer. But technology has made things more manageable, enabling manufacturers and consumers to interact seamlessly through the internet. Individual customers and businesses can now request manufacturing services and have the products shipped to their location, without ever setting foot on the manufacturer’s yard. A report from Statista showed that the manufacturing industry amounted £188.1 billion in e-commerce sales in the year 2019. It’s the second largest sector in terms of e-commerce sales value, only slightly trailing behind the wholesale industry. This trend will likely hold in the future as more manufacturers are shifting to a customer-centric approach. There must be valid reasons why both individual consumers and businesses of all sizes are turning to online platforms in such huge numbers. Here are some of them: Convenience Customers usually prioritise satisfaction when ordering manufacturing services, and many online manufacturers have proven that they can meet this expectation. For instance, if you’re looking for a CNC manufacturing service, all you need to do is upload your 3D model and specify all the properties you want—such as material, surface roughness, general tolerances, etc—and you’ll get a quote almost immediately. In essence, ordering manufacturing online involves just a few mouse clicks or taps on a screen. That’s far more convenient than visiting the company’s physical location. In-person visits are never guaranteed, given how frequent appointments get cancelled or rescheduled because of delays in traffic or conflicts with other commitments. On-time deliveries Competition among manufacturers in the online space drives them to strive towards premium quality products and on-time deliveries. Using a manual system might mean dealing with longer processing cycles. Moreover, travelling to and from the manufacturing plant to assess order progress is usually burdensome on the part of the customer. And if the manufacturer isn’t keeping up with their promises and hitting the milestones as agreed, customers might need to find better manufacturers to work with and start the process all over again. Accuracy Paper-based manufacturing orders are less accurate than automated online orders since placing purchase orders manually comes with the usual risk of human error. In fact, a study showed that 23% of all unplanned downtime in manufacturing is caused by human error. That’s why these archaic and ineffective systems typically lead to lower customer satisfaction rates. On the other hand, automated online manufacturing orders are more accurate and ensure better visibility throughout the whole process. Furthermore, both sides will save time on data cross-checking, manual data entry, and catalogue updates and maintenance. Market Changes And Technology In 2020, the world experienced one of the most intense recessions since World War II. The global economy shrunk by around 5.2%, which caused many workers in the manufacturing industry to lose their employment. Most global value chain firms started using advanced technologies to deal with the worker shortage, especially during the lockdown. This period is when companies discovered the importance of technology in production and customer service to keep them afloat. Manufacturers started to digitise their operations and services. Most of their workers started working remotely through a global virtual operations room. The Manufacturing & E-Commerce Benchmark Report from Sana Commerce showed that by 2021, 98% of manufacturers have started implementing or are working on an e-commerce strategy. Indeed, the manufacturing industry is undergoing a revolution. Manufacturers have been incorporating digital technologies in production and ecommerce to improve the efficiency of their operations. After all, e-commerce comes with a host of benefits—customers can now access their account details and order history immediately. They can also get status updates in real-time, any changes to their order details can be communicated and implemented nearly instantaneously. With technology making account management and product development more efficient, it’s highly unlikely for customers and manufacturers to revert to manual systems. Speed and Reliability There’s more demand from customers for manufacturers to process orders rapidly and accurately while maintaining efficient operations. With advanced manufacturing processes, robotics, and automation, manufacturers can meet this demand. Ordering online considerably reduces the product cycle time, making it an attractive choice among customers and businesses. Conclusion With modern technological advancements, the manufacturing industry hasn’t been left behind. Manufacturers have wholeheartedly embraced ecommerce, and businesses and customers can expect improved visibility and reduced costs for their orders. Online manufacturing order systems are rapidly evolving and will eventually become the new norm because they’re faster, more reliable, and more convenient than manual systems. So, if you’re still relying on the manual method, it’d be wise to try the online option to discover its immense benefits.