UK small and mid-sized firms reported a 128% surge in average sales during Q3 2024, alongside a 123% rise in purchase orders (POs) placed with suppliers, according to inventory management software provider Unleashed.
Fashion manufacturers—including footwear and accessories producers—achieved the fourth-largest increase in sales revenue among the 12 manufacturing categories analysed, as well as the second-highest growth in POs.
Across the manufacturing sector, both revenue and POs rose by 88%, reflecting strong confidence among consumers, retailers, and businesses. Clothing manufacturers, in particular, are ramping up inventory purchases, anticipating higher orders. This optimism aligns with consumer confidence reaching its highest level in five years during Q3 2024, at minus 7.9%.
Social media continues to drive fashion sales, with 42% of consumers purchasing fashion items via platforms like Instagram, Facebook, and TikTok in 2023. Trending content on these platforms is increasingly shaping buyer behaviour.
The average number of POs placed per quarter by UK manufacturers climbed to 322 in Q3 2024, up from 171 in Q2 and 262 in Q3 2023. Meanwhile, lead times—the duration between placing an order and receiving goods at the warehouse—remain low, indicating a healthy supply chain.
“Firms are buying more inventory – and while this might bring back bad memories of post-Covid disruption, when manufacturers were forced to adopt a ‘just in case’ strategy – it’s actually a positive sign in the current climate. Lead times remain low, so the orders we currently see flowing through the supply chain look like genuinely robust business confidence,” said Joe Llewellyn, General Manager of Cloud ERP at The Access Group, the parent company of Unleashed.
The surge in sales and purchase orders across UK manufacturing, particularly in the fashion sector, highlights critical sustainability challenges. While this growth reflects economic vitality, it also exacerbates resource consumption, production waste, and environmental pressures.
The fashion industry, often scrutinised for its ecological impact, must balance expansion with measures to minimise waste, cut emissions, and embrace circular economy principles. As consumer demand rises, businesses face both an opportunity and a responsibility to invest in sustainable practices, ensuring today’s growth does not jeopardise the planet’s future.