Rising energy costs continue to beleaguer manufacturers, and any further rises could push many companies to the brink, a business pressure group has warned.
Continuous surveys of output and orders in the manufacturing sector have shown factories struggling to pass on escalating energy prices to their customers.
Future hikes in the cost of gas could put many more businesses at risk, claims the Institute of Directors (IoD), which has called for “urgent action” from government.
The IoD said it blames foreign energy markets, including some fellow EU member states, for negatively contributing to this country’s price crunch and has called for a more diverse energy supply so that business and consumers are not overly reliant on one source.
“Gas prices are now so high that without urgent government action, tens of thousands of jobs in UK manufacturing could be at risk,” said Miles Templeman, director general of the IoD.
“This year we have witnessed a number of business failures within industry as a result of the high cost of energy, and businesses are already reducing investment in UK manufacturing.”
Some 60% of businesses believe the energy supply industry within the EU should be more liberalised, the IoD said.
