Notably, the clothing sector has successfully managed its overstock levels, reducing them to £52,475 from £77,400 in 2021, a significant decrease demonstrating effective inventory management, as per the report.

The broader picture of UK manufacturing reveals a resilient rebound at the end of 2023. Out of the 16 categories studied, 11 scored above 50 health points on the Manufacturers’ Health Index. Additionally, lead times have seen a dramatic reduction, more than halving from an average of 43 days in 2022 to 20 days by the end of 2023.

Despite these positive trends, the lingering effects of the pandemic are still evident. Many businesses continue to engage in 'just in case' overstocking, a practice that has become more common since the pandemic. By the latter part of 2023, excess inventory levels had grown to £141,397, up from £119,183 in the same period in 2022. However, it's worth noting that retail and consumer-centric manufacturers, like those in the clothing, footwear, and accessories sectors, seem to be managing their inventories more effectively compared to others.

“Manufacturers in every industry category were hit by challenges from all directions in 2023­—including high inflation and rising borrowing costs. The UK fashion industry contributes £62 billion to the UK economy and supports 1.3 million jobs. While the cost-of-living crisis has got some people tightening their purse strings, fashion manufacturers could have fared remarkably well. High street clothing is a relatively affordable luxury compared to bigger ticket items, and demand can be bolstered by social media influencers, personalised communications and discount codes,” said Jarrod Adam, head of product at Unleashed.

Fibre2Fashion News Desk (DP)