Market, energy issues concern UK seals makers

London – UK-based sealing products makers have indicated that ‘importing’ and ‘utility bills’ remain their main concern for the next six months, as a majority of the segment continues to feel the pressure from higher costs of raw materials and energy.

In a survey conducted in October by the UK Gasket and Sealing Association (UKGSA), an overwhelming 92% of participants cited “importing” was a big concern for their business, followed by: utility bills, 58%; and ongoing Brexit issues, 42%.

A 92% majority of the respondents said they had felt the negative outcome of escalating material costs on their businesses, while 67% also felt the pressure by energy costs.

Despite inflationary pressures, the industry was generally upbeat about prospects for the remainder of this year and into the first quarter of 2023.

Some 50% of the respondents said they felt optimistic about the business outlook, while 33% remained neutral. A 17% minority said they envisaged a ‘negative development’ for the full current year.

For 2023, a 58% majority were optimistic while 8% said they ‘felt negative’.

According to UKGSA chair and MacLellan Rubber director Simon Winfield, many members have signalled that they will continue to invest in plant improvements, machinery and facilities, as well as providing better financial support to staff in the coming months.