OPTIMISM FOR THE FUTURE BUT UNCERTAINTY REMAINS SAYS NEW MANUFACTURING SURVEY

More than 80 per cent of manufacturing companies expect turnover to grow this year, according to the latest manufacturing survey from accountanting an advisory firm Crowe.

But such optimism for the future is tempered by the fact that the manufacturers are working from a very low starting point.

The findings reveal that despite everything they’ve had to deal with this year, most manufacturers are looking to the future, with 90 per cent agreeing that Industry 4.0 will start to replace traditional manufacturing methods.

Another major issue is the e ect of Brexit. More than 70 per cent of respondents think that it will a ect their business, and almost three quarters of respondents said that current government incentives are ine ective. With almost half of those surveyed saying that their major competitors are located overseas, if it continues to prove more di cult to export abroad, manufacturers are seriously concerned about losing long-term business.

In his introduction to the Manufacturing Outlook report for 2021, published in association with the Confederation of British Metalformers (CBM), Johnathan Dudley, Partner and Head of Manufacturing at Crowe, said: “The prospect of the rollout of vaccines over the winter and spring suggests an end to COVID-19 disruption. The EU deal also provides more certainty.

Now businesses need to use their time wisely to plan for what will be a di erent future.”

The biggest challenge, outside any debt, will be rebuilding confidence in the markets and better sales, according to Stephen Morley, President of the CBM, which is the leading trade association for UK manufacturers of fasteners, forgings and pressings, coldrolled and sheet-metal products.

The main barrier to growth does not just lie in the UK. More than 30 per cent of respondents cited global economic conditions as the main restraint, just ahead of Brexit.

With most commentators and government agencies seeing the UK’s future prosperity for the manufacturing sector as being export led, government assistance to increase exporting and to encourage businesses to even make a start is key.