According to research published in the latest manufacturing report by inventory management specialist Unleashed, small and mid-sized clothing manufacturers in the UK saw their average quarterly sales revenue fall to £278,427
This represents a substantial decrease from £498,254 in the previous quarter and also marks a year-on-year drop of 53%.
Across all manufacturing categories, average sales revenue declined by 39% during the same period.
The Unleashed quarterly report draws on information from over 600 UK firms using the company’s inventory management platform. These businesses operate in sectors including clothing and fashion, food and drink and construction.
Clothing manufacturers ranked seventh out of the 12 manufacturing sectors included in the analysis, the report showed.
Leisure and recreation manufacturers saw a similar reduction, with quarterly sales revenue also falling by 44% to £222,657.
The furnishings sector recorded the steepest decline, with revenue plunging by 61% from £239,280 to £92,410. Construction suppliers experienced their sales revenue fall by 57%, dropping from £486,638 to £209,662.
The report indicates that contracting sales were accompanied by a reduction in purchasing activity and lower stock levels across manufacturing.
The value of purchase orders across all categories on average fell by 51%. At the same time, profitability dropped from 54% in the previous quarter to 35%, the lowest recorded since before 2018.
Despite these conditions, lead times shortened from 26 days to 19 days, while stock on hand more than doubled to £244,615, a rise from £121,263 in the previous quarter, suggesting a potential slowdown in inventory movement.
Unleashed’s parent company, The Access Group, ERP Small Business GM Joe Llewellyn said: “Tensions in the Middle East, including the Strait of Hormuz blockade, have created significant market uncertainty – and our data suggests this is now taking its toll on manufacturers.
“Having started the year on a growth footing, the first quarter of the year saw the biggest drop in sales revenue we’ve recorded since 2024. With fuel prices already up, and energy prices expected to rise later this year, the coming months could reduce confidence, increase costs, and squeeze margins even more. While many SMEs have slim buffers to weather these changes, our data suggests they’re taking steps to mitigate the impact by reducing stock on hand to protect their margins.”
