A perfect storm of the global economic downturn, a rising cost of living, rising consumer confidence and a sluggish U.S. economy is set to turn manufacturing into a less profitable industry in the near future, according to a new study by the U.K.-based Centre for Economic Performance.
The Centre for Market Studies said the outlook is “not encouraging” for U.H.I.G. and other companies that make textile and other materials that are crucial to the global fabric industry.
The industry has been hit hard by a global downturn in manufacturing output, the report said.
In addition, there is a “rising cost of labour,” the report added.
“The impact on global supply chains will be severe.
The number of U.F.O. factories will increase from 10,000 in the past decade to over 50,000 by 2040,” the study said.
The U.N. said last month that the global manufacturing industry lost $6.5 trillion in value over the last 12 months.
The global economy was hit by a sharp slowdown in the global financial crisis in 2009-10, which has continued.
But the slowdown has slowed to a trickle in recent years and is expected to continue for the foreseeable future.
The study said there is “some evidence that the slowing of global economic growth is becoming more apparent, particularly in the developed world.”
Manufacturing was the second largest contributor to global GDP in 2020, behind finance and insurance, and accounting for about 20 percent of global output.
But with global trade volumes shrinking, the U,H.G., and other manufacturing companies have been left struggling to survive, the Centre for Markets said.
“A combination of the rising cost and weak demand for UH.
H.’s products, coupled with the slowing global economic recovery, will make the industry increasingly uncompetitive in the coming decades,” it said.
Manufacturing is still a “huge” part of the U.,H.E. business, but with the slowdown in global demand for its products, the industry “will struggle to survive.”
It added: “In a world of growing inequality, rising living standards and rising consumer expectations, manufacturers are in a bind.”