UK manufacturers have been hit by the steepest fall in orders for six years, with many attributing the decline to rising industrial electricity costs. The call to action has been made to Andy Burnham, the Mayor of Greater Manchester, who is also the chairman of the Northern Powerhouse Partnership. The organisation has urged Burnham to use his influence to push for a reduction in industrial electricity prices, which have seen a sharp rise over the past four years.
The latest figures from the Confederation of British Industry (CBI) have revealed that manufacturing orders have plummeted by 11% over the past three months, with costs being a major contributing factor. The increase in industrial electricity prices has resulted in higher production costs for manufacturers, making it difficult for them to remain competitive in the market. The CBI has called on the government and industry leaders to work together to address the issue and provide relief to manufacturers.
Experts believe that reducing industrial electricity prices will not only help manufacturers but also have a positive impact on the broader economy. A reduction in prices would lead to lower production costs, making UK manufacturers more competitive in the global market. This, in turn, would create new opportunities for growth and job creation.
The call to action has been welcomed by industry leaders, who believe that Burnham's influence can make a significant difference. However, a spokesperson for the Mayor's office has declined to comment on the matter, stating that the issue is being reviewed.
The CBI has also warned that if action is not taken soon, the decline in manufacturing orders could have a ripple effect on the economy, leading to job losses and slower growth. The organisation has called on the government to provide urgent support to manufacturers to help them navigate the current challenges.