Daily Management Review

New Survey Shows Positive Sentiments Of UK Manufacturers For 2022 Even In The Face Of Brexit And Inflation


New Survey Shows Positive Sentiments Of UK Manufacturers For 2022 Even In The Face Of Brexit And Inflation
British manufacturers are optimistic that business conditions and productivity will improve this year despite most saying they have been hurt by Brexit and rising costs, according to an industry survey published on Monday.
About 73 per cent of the manufacturers who were surveyed in the study that was conducted by trade body Make UK and accountants PwC were of the opinion that there would be improvements in the conditions of the sector while 78 per cent of the manufacturers expected to see at least a moderate level growth in productivity in the current year.
However, in the survey, about two thirds of the firms surveyed opined that their business had been significantly hit by Brexit in the two years since Britain had officially exited the combined market of the European Union, even while the companies the pressures of retaining their employees and increasing costs of input because of inflation also presented a challenge for them.
"It's testament to the strength of manufacturers that they have emerged from the turbulence of the last couple of years in such a relatively strong position," said Stephen Phipson, chief executive of Make UK.
"To build on this we now need to see a government fully committed to supporting the sector," he said, adding that the government needed a longer-term vision for the economy.
Last year there was a severe impact on the effectiveness of supply because of Brexit and the Covid-19 pandemic which prompted more than one thirds of the businesses surveyed to say that they would reshore some operations within the next two years. However, rest one third of the respondents said they would not be moving any of their production back into the United Kingdom.
According to a separate but similar survey, last month, the number of British manufacturers who raised prices of their products touched the highest in at least two decades, in the face of the Bank of England raising its interest rates to 0.25 per cent in its efforts to eas out inflationary pressure.
British manufacturing output in October was about 2 per cent lower than the pre-pandemic levels, showed official data.
According to anticipates that by Make UK, there was potentially a growth of 6.9 per cent in manufacturing in 2021, and expects the growth rate to be 3.3 per cent for the current year.
The survey comprised 228 companies and was conducted between November 8 and November 29.