The Q2 2025 report draws on data from over 600 UK-based firms using its platform. These firms span various sectors including food and beverage, clothing and fashion, and construction.
The findings demonstrate that manufacturers in the clothing, footwear, and accessories segments are actively increasing their inventories.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This move is aimed at ensuring continuous product availability and maintaining service standards amid extended lead times, a trend that saw an increase of 13 days from the first to the second quarter.
Small to medium-sized enterprises realised sales of £479,943 in Q2 2025, marking a 109.3% increase compared to the same period in the previous year. However, this was an 18.9% decline versus Q1 2025.
Concurrent with the procurement surge, the value of surplus inventory tripled quarter‑over‑quarter, rising from £24,920 ($33,679) to £88,371.
Gross margin percentage (excluding wages), a profitability indicator, experienced a slight decrease both quarterly by 4.37 percentage points and annually by 2 percentage points.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe report also highlighted a notable rise in lead times, which escalated from 19 to 32 days quarter-over-quarter.
Moreover, there was a substantial yearly increase of 37.85% in the number of purchase orders, which soared from 313 to 488 on a quarterly basis.
Joe Llewellyn, GM of ERP Small Business at The Access Group, the parent company of Unleashed, said: “The rise in POs and stock levels marks a tactical pivot for fashion manufacturers, with cautious buffering designed to mitigate the risk of delays and stockouts, particularly ahead of Black Friday and Christmas.
“In many cases, this isn’t a knee-jerk reaction to market conditions but a measured response. As manufacturers become more data driven, they’re able to improve their forecasting capabilities and reduce the risks associated with stock purchasing decisions.
“Looking ahead, there are promising signs that manufacturers will end 2025 in a good position. Sales are healthy, while separate figures show that business confidence has risen steadily every quarter this year. The Bank of England has also cut interest rates from 4.25% to 4%, while inflation is expected to fall below the 2% target. Taken together, this could contribute to margin recovery and selective growth.”
