State of industry report Q2 2022
02 September 2022
We have published the FDF State of Industry Report based on the Q2 State of Industry Survey. In Q2, food and drink manufacturers’ confidence fell to its lowest level since we started tracking it in Q1 2018, with the mood more pessimistic than at the start of the COVID-19 pandemic. Unfilled vacancies remain a major cause of concern in the sector, with shortages reported across a wide range of roles and skill. We will soon start to prepare the survey for Q3, which we expect to have a greater focus on the impact of energy costs on production.
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- In Q2 2022, food and drink manufacturers’ confidence fell to its lowest level since we started tracking it in Q1 2018, with the mood more pessimistic than at the start of the COVID-19 pandemic.
- The outlook for Q3 is bleak, with 45% of respondents expecting the outlook for their business to deteriorate in Q3 compared to Q2, in contrast to only 15% that expect conditions to improve.
- Unfilled vacancies remain a major cause of concern in the sector, with the vacancy rate per 100 employees, increasing to 6.3% in Q2, up from 5.2% in Q1.
- Shortages were reported across a wide range of roles and skills, from high-skilled roles (engineers, HR and legal) to technical specialists (butchers and laboratory technicians) and production operatives.
- Manufacturers are doing what they can to tackle labour and skill shortages, from increasing pay and offering more generous benefits, to increasing flexibility and upskilling their workforce, but it is impacting production levels and cost.
- Most businesses had ongoing investment projects, with only 8% of large companies and 6% of SMEs declaring no current investments. Most investment resources were directed into developing new products and/or processes as a priority.