While revenue was ahead of the same time last year, bookings slowed and BtoB was flat at 1.0:1.
The strong order book carried into 2023 should result in positive revenues in Q2 but there may well be a slowdown, according to ITSA.
Among those UK markets continuing to perform well were Data Processing, Broadcast, Utilities and T&M leading the way, all with significant double-digit growth. This continues, however, to be offset by weakness in Comms and Mass transport both of which showed significant declines. Members’ Mass Transport revenues have now declined for three quarters in a row.
At a product level every area has grown in Q1 with only Coax showing a small drop. Circular connector products continue to thrive with another +13% increase in Q1 and are now almost back to the highs of pre pandemic levels.
Overall, 2023 appears to have started positively for ITSA members but with orders dropping ITSA warned of a flattening out in Q3/4.
Going forward, while concerns as to whether the UK will enter recession in 2023 have eased, interest rates are still rising while remaining at a historically very low level, but inflation remains a challenge.
Despite that, recent reports - from CIPS UK Manufacturing PMI and the IOD (Institute of Directors) - showed that the level of optimism being expressed about the next 12 months remained strong. CIPS said almost 60% of respondents expected growth whereas the IOD report indicated 61% expected growth.
According to ITSA, 2023 will, as usual, present members with another set of challenges but the industry remain resilient.
As with the end of 2022 the economic, political, inflationary, cost-of-living challenges, and skills shortages, combined with the impact of the war in Ukraine, means the UK market remains challenging.
