Manufacturing Prospects Report
03 November 2016
The United Kingdom's decision to leave the European Union (Brexit) will have a profound effect on manufacturing. There are early signs that all is not doom and gloom and sector data since Brexit has been mostly positive (UK manufacturing PMI in October was at 54.3 with upturns in output, employment and new orders and GDP grew by 0.5% in the third quarter). But how are UK manufacturers responding to Brexit?
BDO's Manufacturing Prospects Report, in association with the Institution of Mechanical Engineers, analyses the sector's outlook post the referendum, focusing on the key risks and opportunities, strategic plans and highlights manufacturers' top requirements from the EU trade agreement and industrial strategy.
The survey results found that more than half (51%) of UK manufacturers see the weaker sterling as a key benefit for their business over the next 12-24 months, with 44% of businesses refocusing on internationalisation in light of the UK's decision to leave the EU. Despite over half (51%) of UK manufacturers still believing the UK's decision to leave the European Union would have a negative impact on the manufacturing sector and their business, they refuse to let it dent their growth ambitions and are not putting investment plans on hold. 37% want to stay in the European Economic Area, with free movement of people and 79% of respondents selected a long-term strategy over 15-20 years as the most important element for an industrial strategy.
We are grateful to all those who shared their opinions and we hope you find this report interesting and thought provoking for your business.
If you would like to discuss any of the issues raised in this report, please don't hesitate to contact Tom Lawton or your usual BDO Manufacturing partner.