The energy crisis is forcing manufacturers to consider cutting production or closing down altogether, according to new research. Make UK said its study showed firms were warning that their energy costs have already “spiralled out of control”.
Around half of the 200 companies surveyed said their electricity bills have shot up by more than 100% in the past 12 months and half expect the same fate in the coming year. Around one in eight of those polled said they have already made job cuts as a result of increased energy bills, and admit that more drastic action such as full shutdowns and wider redundancies will be needed if expected price hikes materialise in the next 12 months.
Make UK, which represents manufacturers in the UK, said the country is lagging behind EU counterparts offering more emergency help for industry, such as the Italian government cutting levies on gas and electricity bills and reducing VAT for energy intensive industries. Stephen Phipson, chief executive of Make UK, said: “As energy bills spiral out of control, manufacturers are working tirelessly to find ways to reduce consumption, putting in place as much as they can afford in terms of building improvements and installing renewable sources of energy.
