Is Britain heading for an industrial recession?

Inflationary pressures have been impacting manufacturers for some time now, with costs rising across the board from energy, transport, raw materials and employment. Whilst businesses can do little to influence multi-national energy or logistics firms, on the back of raw material shortages experienced during the pandemic, many reevaluated their risks and took the opportunity to increase inventories to ensure they weren't caught short again. The upshot now, though, is overstocking, reduced demand and lots of cash tied up in stocks. With cash being king, businesses are doing what they can to hold on to money for longer, which has resulted in an increase in requests for longer payment terms, or in extreme situations companies defaulting on payment completely. As skills and labour shortages have plagued the manufacturing sector for several years, recruitment, or the lack thereof, is also a major contributor to the decline in output.