New figures have revealed a dramatic uplift in sales revenue and purchasing for UK health manufacturers.
Small and mid-sized firms saw their average sales jump by 121 per cent in the third quarter of this year, while the number of purchase orders (POs) placed with suppliers was also up by 92 per cent, according to the report.
Health manufacturers – which includes medical supplies and equipment – saw the third biggest jump in sales revenue out of all the 12 manufacturing categories analysed.
It also saw the eighth biggest rise in POs.
Revenue and POs were both up by 88 per cent across the manufacturing sector – signalling high confidence among consumers, retailers and other businesses.
The report also shows that health manufacturers are buying more inventory in anticipation of further orders.
It comes as the NHS announced its plans to implement innovative technology quickly in the hope to improve patient outcomes.
The government also set aside £2bn for NHS technology improvements, in its recent Autumn Budget.
The NHS already spends £8bn per year on medical equipment and consumables but there is continued demand.
Digital health tech, like wearable devices, is also booming, with the UK’s medical devices market expected to grow by 6.67 per cent from 2024-2029.
Joe Llewellyn is GM of Cloud ERP at The Access Group, the parent company of Unleashed who authored the report.
Llewellyn 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.”
