Q1: UK clothing manufacturers take 40 percent hit on revenue

New data in the latest Manufacturers’ Health Index by management software provider Unleashed has revealed the extent to which small and medium enterprise (SME) clothing manufacturers have been impacted by the current market climate.

According to the figures outlined, SME clothing manufacturers in the UK saw their revenue drop 40 percent in the first quarter of the year, the sharpest decline out of all manufacturing categories analysed in the report.

This, however, contrasted an improvement seen on a year-on-year basis, for which the clothing sector saw its revenue up 14 percent compared to the same period last year.

This came well above figures for the overarching manufacturing sector, in which firms only saw an average of a 2 percent increase YoY.

In a release, Joe Llewellyn, GM of Cloud ERP at The Access Group, the parent company of Unleashed, said: “While it’s disappointing to see revenue drop so much in Q1 2024, the year-on-year improvements are a sign that the clothing industry is in a stronger place than it was previously.

“We know from speaking to SME manufacturers how important technology is in driving operational efficiencies and diversifying their sales channels, and these investments are starting to bear fruit.”