UK health manufacturers poised for growth following 121% Sales Surge in 2024

Published: 13-Jan-2025

Health manufacturers in the UK look set to go from strength to strength in 2025 after average sales jumped by 121% in Q3 of 2024

The figures were revealed in the Manufacturers’ Health Index, by inventory management software provider Unleashed.

Unleashed compiles quarterly data on purchases, sales, and stock movements among SME manufacturers across the UK. 

It found that average sales revenue for SMEs jumped by 121%, while purchase orders placed with suppliers rose by 92% for health manufacturers in Q3 of 2024.

The results also showed that health manufacturers, including medical suppliers and equipment, had the third biggest jump in sales revenue out of all 12 manufacturing categories analysed. 

It found that average sales revenue for SMEs jumped by 121%, while purchase orders placed with suppliers rose by 92% for health manufacturers in Q3 of 2024

Revenue and POs were both up by 88% across the manufacturing sector – signalling high confidence among consumers, retailers and other businesses. 

The report also shows that health manufacturers are buying more inventory in anticipation of further orders. 

It comes after the NHS announced its plans to implement innovative technology quickly in the hope to improve patient outcomes

The government also set aside £2bn for NHS technology improvements, in the Autumn Budget last year. 

The report also shows that health manufacturers are buying more inventory in anticipation of further orders

The NHS already spends £8bn per year on medical equipment and consumables but there is continued demand.

Digital health tech, like wearable devices, is also booming, with the UK’s medical devices market expected to grow by 6.67% from 2024-2029.

Joe Llewellyn, GM of Cloud ERP at The Access Group, the parent company of Unleashed, said: “This uptick in sales revenue and purchasing bodes well for the manufacturing industry. 

“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.

“It will also be interesting to see what impact the Autumn Budget will have on the wider manufacturing industry. On the one hand, business leaders have warned that rises in National Insurance, minimum wages, and business rates will hit them hard. However, the government has pledged to invest in housing, public infrastructure, clean energy, and technology, which could provide a welcome boost to manufacturers in the construction, energy, and electronics sectors.”

You may also like