UK manufacturers are sitting on a $29 bn pile of unfinished goods

UK manufacturers are sitting on almost £24 billion ($29 billion) worth of unfinished goods that can’t be sold because of persistent supply shortages, a survey from Barclays Plc showed.

The poll showed 72% of the 631 companies in Britain are facing the inventory logjam tied to a lack of components, materials or ingredients. Steel and other metal products are the biggest category of products awaiting completion, followed by food and beverage, plastics, and electronics, the late-October survey released Tuesday showed.

The reasons cited for the continued strains include the pandemic, Brexit, China’s Covid-19 lockdowns, Russia’s war in Ukraine and the pound’s weakness. Given the backlog at factories, British households already suffering under crushing inflation may face even more cost-of-living pressures.

“Consumers may not feel the impact of these problems yet, since stockpiling action by retailers is ensuring a continued flow of goods to the shelves,” the report stated. “However, if the supply-chain issues persist for manufacturers, this could ultimately affect end-buyers.”

Almost 60% of the respondents said they’re still facing supply-chain challenges, and higher energy, raw-material and transportation costs are magnifying the difficulties, the survey showed. Two-thirds expected an improvement over the next six months, while 30% foresee little change, it showed.

Despite the difficult environment, labor is still in short supply, as the survey showed manufacturers are seeking to fill more than 250,000 openings, amounting to 14% of the workforce.