Tysers, a leading independent Lloyd’s broker and a member of the AUB Group has noted an increase in new and expanding manufacturing projects across Scotland.
Recent news has seen £5.6million backing for a Moray manufacturing innovation centre, a £67million upgrade underway at GSK’s Montrose facility and £14million levelling up funding made available to support Glasgow manufacturers.
“The increase in new manufacturing projects announced in Scotland, and additional funds made available for Scottish manufacturing is obviously great news for the industry, however new or expanding manufacturers also need to make sure they are protected against all risks to their business,” advises Sam Towler, Client Director, North of England and Scotland.
With the entire manufacturing sector making up over 43% of all UK exports and employing around 2.6 million people, this increased funding is targeted at the UK’s strongest, world leading sectors as per the gov.uk website.
To help the manufacturing industry build resilience and manage risks, here are the top 5 sector risks of concern to watch out for – hand-picked by our experts.
1. Business interruption risks • This can mean loss of profit following an insured property damage event.
• Lead times on critical supplies can also take longer to source or transport.
2. Climate change risks• Increased energy costs, particularly for heavy materials users can affect profitability.
• Increase in property related hazards like floods and fires could mean extra protection is needed.
3. Reputational risks• Manufacturers need to think about product failure, defective or contaminated products and recalls.
4. Employee risks• Labour shortages and attracting and retaining talent continues to be a key risk.
5. Inflation risks• Under-insurance risks need to be carefully considered.
• The increasing costs of raw materials, labour and utilities can put a financial strain on the business.
Getting the right advice and having the right insurance cover could help mitigate these risks. Read more about key covers for Manufacturing here: https://www.tysers.com/manufacturing-sector-in-uk-boosted-by-new-funding/
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Tysers specialist team combines insurance expertise and knowledge of the manufacturing, processing and production industries. Tyser's brokers understand the unique risks faced by your business and will search the market to find the best value cover. Contact Tysers here: https://www.tysers.com/contact-us/