Revenues plummet for clothing and homeware manufacturers in Q1
Small to mid-sized clothing and homeware manufacturers saw their revenue fall sharply in the first quarter of the year, according to new figures released.
Clothing businesses suffered a 40% decline in revenue, followed by homeware at over a quarter.
The figures were compiled by supply chain technology company Unleashed, based on data from purchases, sales and stock movements among SME manufacturers across the UK.
David Waugh, from corporate clothing supplier the Waugh Group in Hampshire, said: “The current climate makes it difficult to do business – and the uncertainties and pessimism of the past few years still exist. There’s still a lingering national self-doubt that dims our expectations and future progress generally.”
Nationally, the research found that revenue across the manufacturing industry dropped by 10% in the first quarter of the year.
Only the drinks industry reported significant growth at 63%, followed by healthcare supplies, and construction at 18% and 7% respectively.
But while revenue was down compared to the previous quarter, there was a modest 2% year-on-year uptick – reflecting the Bank of England’s assessment of weak growth in the manufacturing sector.
Stand-out performances came from the drinks industry with a 121% year-on-year jump, followed by personal care at 46%.
Clothing and homeware manufacturers also fared better, with rises of 14% and 7%.
Joe Llewellyn, GM of Cloud ERP at The Access Group, the parent company of Unleashed, said: “Clothing and homeware manufacturers may be bearing the brunt of low consumer confidence that has persisted since the pandemic. Hopefully, the recent rise in confidence could represent a turning point, enabling both manufacturers and retailers to finally get back on track.”
According to the research, the manufacturing industry as a whole has cut lead times down to an average of 20 days – having already hit a five-year low in Q4 2023.
Llewellyn added: “Inflation has battered the manufacturing industry – but the short lead times we see today are a small reprieve and a sign that they’re in control of one of their biggest costs, their inventory. This will help them to remain resilient and take advantage of more favourable economic conditions in the future.”
Category breakdown
Revenue: Quarter-on-quarter change (Q4 2023 – Q1 2024)
| Industry category | Quarter-on-quarter change |
| Clothing, Footwear, Accessories | -40% |
| Furniture, Fixtures, Home Furnishing (homeware) | -26% |
| Electronics, Telecommunication | -25% |
| Electrical and Electronic Components | -20% |
| Sport, Entertainment, Recreation | -14% |
| Energy, Chemicals | -8% |
| Food | -6% |
| Personal Care | -4% |
| Industrial Machinery, Raw Material and Equipment | -2% |
| Building and Construction | 7% |
| Health, Medical Supplies and Equipment | 18% |
| Beverages (alcoholic and non-alcoholic) | 63% |
| All industries | -10% |
Revenue: year-on-year change (Q1 2023 – Q1 2024)
| Industry category | Year-on-year change |
| Energy, Chemicals | -31% |
| Building and Construction | -14% |
| Food | -9% |
| Electronics, Telecommunication | -1% |
| Health, Medical Supplies and Equipment | 2% |
| Furniture, Fixtures, Home Furnishing (homeware) | 7% |
| Industrial Machinery, Raw Material and Equipment | 10% |
| Electrical and Electronic Components | 11% |
| Clothing, Footwear, Accessories | 14% |
| Sport, Entertainment, Recreation | 26% |
| Personal Care | 46% |
| Beverages (alcoholic and non-alcoholic) | 121% |
| All industries | 2% |
For more information and the full research, visit: www.unleashedsoftware.com/industry/manufacturing-inventory-management/manufacturinghealthindex
