Many CNC Machining companies have began 2021 at a relentless pace due to a number of factors. Brexit has had a huge impact on sourcing from overseas which has seen companies looking to work with local machining shops. Undoubtedly, an element of this also stems from the current situation regarding Covid-19. This could be a future trend for how UK companies look to source precision components moving forward. A major worry when importing from overseas is the lengthy delivery times which hold up sales.
Current issues for CNC Machining companies…
Since the turn of the year material prices have increased between 20 to 30 percent with a number of factors pushing prices upwards. Low productivity during 2020 has created a gap in supplies within the market place for materials. Many production mills producing steel and brass have been operating at reduced capacity due to Covid-19 restrictions. With demand for machined components increasing in recent months many mills are struggling to catch up.
A vast percentage of tooling used by CNC Machining companies is sourced from Europe and there have been significant delays on the back of Brexit. Much of this is down to the increased planning and paperwork involved for sourcing from Europe. This has caught many tooling suppliers off guard hence the significant delays.
Outlook for the Months Ahead
We see the next few months as remaining busy due to the proposed return to operation of a number of industries within the UK. Areas such as hospitality and leisure will be opening back up which indirectly will increase the order books for manufacturers.