What's Happening?
The Confederation of British Metalforming (CBM) is calling for government support as manufacturers face an 'Energy Armageddon' due to rising energy costs. Recent changes in non-commodity electricity pricing and a new stealth tax have significantly increased
expenses for manufacturers. CBM President Stephen Morley highlights the impact on the supply chain, with energy costs expected to rise by 10-30% over the next six months. The CBM criticizes the government's focus on supporting only the largest energy-intensive businesses, urging broader assistance for SMEs in the manufacturing sector.
Why It's Important?
The rising energy costs pose a severe threat to the manufacturing industry, which is vital for economic stability and job creation. The CBM's call for government intervention underscores the need for equitable support across the sector, particularly for SMEs that form the backbone of the supply chain. Without adequate assistance, these businesses may struggle to compete globally, potentially leading to job losses and reduced economic output. Addressing these challenges is crucial for maintaining industrial security and supporting the transition to net-zero goals without compromising the viability of manufacturers.
