Sustainability as a Key Driver of Profitability for UK Manufacturers
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New research from European software provider Forterro reveals that sustainability is increasingly driving financial success for UK mid-market manufacturers. According to The UK Midmarket Manufacturing Report: Key Tech Trends, Best Practice, and Future-Proofing, 72% of UK manufacturers reported increased profitability due to more sustainable operations, with 84% considering sustainability a top priority.
The study also underscores the growing commitment to sustainability within the sector, with 71% of respondents having a dedicated resource focused on sustainability and three-quarters of organisations reporting a Net Zero plan. This shift in focus shows that sustainability is no longer just a corporate responsibility but is now a critical factor for profitability.
David Coste, President of North & Western Europe at Forterro, explained, "Operating more sustainably while maintaining market share and controlling costs has historically been a challenge for UK mid-market manufacturers. This research shows how seriously manufacturers are now taking sustainability, recognizing it as a driver of financial success."
Supply chains are a major area of focus for UK manufacturers, with 85% of those surveyed reporting efforts to digitalise supply chain and logistics operations, aiming to improve transport efficiency. The drive to localise supply chains is another key factor, with 46% of respondents prioritising better control, 43% seeking cost reduction, and 38% focusing on sustainability as drivers for localisation.
Technology plays a pivotal role in helping manufacturers achieve sustainability goals. 82% of respondents stated that their ERP systems have been crucial in improving resource management, reducing waste, and ensuring compliance with environmental regulations.
Coste emphasized the importance of ERP systems for manufacturers, saying, "For mid-market manufacturers, an ERP system is a highly effective way to manage resources responsibly and take meaningful steps towards Net Zero."
