A Struggle for Survival in the UK Ceramics Industry
The UK ceramics industry is facing a critical juncture as one of its most iconic firms, Churchill China, reports a 40 per cent drop in profits over two years. This has sparked renewed pressure on the Government to intervene and protect the sector from further decline.
Churchill China, a firm with a 231-year history based in Stoke-on-Trent, supplies top restaurants around the world. However, the company is expected to report an annual profit of £6 million in its upcoming results, down from £8.5 million the previous year and £10.8 million two years ago. The decline is attributed to rising energy costs, which are among the highest in Europe, even before the conflict in Iran. Additional pressures include increases in National Insurance and the minimum wage, which have added £1.5 million to the company’s costs.
Shares in Churchill China have dropped by 46 per cent in the past year, reflecting growing concerns about the company’s future. This situation follows the recent collapse of another historic pottery firm, Denby, which serves as a warning for the entire sector.
Calls for Government Intervention
The ceramics sector is now urging the Government to expand the British Industrial Supercharger scheme, which provides relief on electricity bills and green levies. Currently, only 10 per cent of the UK’s 100 potteries qualify for this rebate. Expanding the scheme could offer much-needed relief to struggling firms.
A source close to Churchill China, which has reduced its workforce from 720 to 650 over the past year and increased automation to cut costs, stated that joining the Supercharger scheme is the most practical short-term solution. The firm has had to raise prices on some products by as much as 40 per cent due to rising costs.
“Energy costs have doubled, products are more expensive, and fewer people are buying us as much,” the source said. “Denby had the same problem.”
Rob Flello, CEO of Ceramics UK, emphasized the urgency of the situation, stating, “This is a critical moment. If the Government doesn’t bring us into the Supercharger, it may regret it.”
Political Pressure for Support
Labour MP Linsey Farnsworth, whose constituency includes the former Denby potteries, has written to Rachel Reeves, demanding that ceramic firms be included in the Supercharger scheme. Similarly, Labour MP Gareth Snell, representing Stoke-on-Trent Central, warned that thousands of jobs are at risk if the sector does not receive support.
“The Government’s support could be the difference between the sector surviving the gas price crisis or some well-known firms going to the wall,” Snell said.
The plea for action comes as Stoke-on-Trent launches its own initiative to address a looming skills shortage in the ceramics industry. With many workers nearing retirement, the city is focusing on training apprentices to ensure the sector can continue to thrive.
Emily Johnson, owner of Stoke-based pottery firm 1882, highlighted the issue: “The median age of our workforce is 55. If we do nothing, skills will just die.”
Personal Stakes and Future Prospects
David Williams, MP for Stoke North and home to Churchill China, has been vocal about the challenges facing the ceramics industry. He has raised these issues directly with the Prime Minister since his election and continues to push for government action.
“Extending the Supercharger scheme to include ceramics would be a practical and targeted step to help level the playing field,” Williams said.
For Williams, the issue is deeply personal. “My mum and grandad both worked in the potbanks of Tunstall and Burslem, and I know first-hand what this industry means to families and communities across Stoke-on-Trent.”
He believes that with the right support, the ceramics industry can “not only endure but continue to lead globally for generations to come.”
Government Response
The Government has acknowledged the ongoing discussions about energy costs and stated that it continues to help businesses navigate the economic challenges. However, the ceramics sector remains under pressure, with calls for immediate and meaningful intervention growing louder.
