The British Alliance of Watch and Clock Makers, the team behind the incredibly successful British Watchmaker’s Day event, has announced the findings of their second Bellwether survey. The survey is part of their initiative to measure and monitor the impact of watchmaking in Britain in order to better understand how to support and foster growth in the sector. The original survey in 2021 was more of a data gathering mission than a full report but with the release of the second report, which runs up to April 2024, we now have two sets of data, allowing us to calculate measurements like growth.
Industry Revenue
And that growth has been substantial. Between 2021 and 2024 revenue in the British watchmaking industry has increased from £125 million to £206 million, an increase of 65%. Considering the broader UK economy saw only a growth of 3% in the same period, it shows the comparative strength of this sector. According the Mike France, CEO of Christopher Ward and co-founding member of the Alliance, it’s indicative of British watchmaking moving from a revivalist rhetoric to a practical business model embracing a wider audience and enabling growth.
Brand Growth
Of the surveyed companies, 75% of them reported revenue growth over the three-year period, with 42% seeing double digit growth. There are also some who have reported between 300%-400% with some outliers reporting up to 24x growth. That’s to be expected because there has been a proliferation of watch brands based in the UK. 67% of the 140 operating companies counted by the survey were founded since 2015. Between them, they account for around 1,600 jobs in the UK, a substantial increase since 2021.
Inventory Management
A key part of the growth is catering appropriately to demand. 60% of companies report a 98% sell-through rate, which is to say they are selling virtually their entire inventory. To certain extent that is to be expected when product yields are relatively low due to the limited edition and made-to-order nature of many watch releases. And even then, the companies that are reporting surplus inventory of around 20%, it’s at practical margin of again a relatively small quantity, so it doesn’t cause issues.
Production
The report concludes by exploring the differences between watchmaking and clockmaking production. In the realm of clocks 86.4% of companies report vertical integration and in-house horology while in watchmaking that drops to 35%. Though conception, design, prototyping, quality assessment and fulfilment remain predominantly managed in the UK, which are fundamental aspects of the process. Hopefully it shows there is room for more manufacturing in the future.
The biggest question though, is will that growth remain stable across the next three years?
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More details at British Watch Alliance.
