Lack of UK Economic Certainty Is Biggest Concern for UK Businesses
More than half (52%) of UK manufacturers think that ‘a lack of UK economic certainty’ is the most pressing concern for business, according to a new snapshot poll1 by Santander Corporate & Commercial. The research, which coincides with Santander’s Manufacturing Industry Day today, found that one in five (21%) of the manufacturers surveyed were concerned about a lack of skilled workers.
The vast majority (75%) say they are planning to expand overseas in the next three years, and of those looking to expand, the European Union is their preferred market, cited by two thirds (66%). This was followed by North America (45%), with the Asia-Pacific region in third (36%).
The figures also revealed that 25% of manufacturing firms were ‘very confident’ on prospects for the sector. While a further 44% said they are ‘slightly confident’ on prospects, just 3% expected the manufacturing sector to ‘grow significantly’ over the next three years, with 44% expecting moderate growth.
Paul Brooks, Head of UK Manufacturing at Santander UK, commented: “It is clear that UK manufacturers are focused on growth and opportunities but have real concerns about the strength of the UK economy. Despite this, the strongly positive aspiration to invest in their businesses and, more particularly, export overseas or expand current international trading activity is very encouraging. Santander has a specific team focused on helping UK manufacturers to export globally, and we are committed to growing this activity as demand increases.”
To succeed in this market environment, a third (34%) of manufacturing firms said they had already increased investment at their business in 2019 – this compares to 10% who have cut investment. Some 38% said they are planning to increase investment looking forward across the year.
Santander’s Manufacturing Industry Day – based in the Midlands, the heartland of UK manufacturing – brings together sector leaders and industry experts from across the country to look at challenges and opportunities for the sector.
Keynote speakers on the day included Dr Hamid Mughal OBE, Director of Global Engineering at Rolls Royce, and Dick Elsy CBE, Chief Executive Officer at High Value Manufacturing Catapult as well as a panel of industry experts including Make UK and other key influencers from well-known manufacturing brands.
For more information on Santander’s Manufacturing sector support, please visit https://www.santandercb.co.uk/sectors/manufacturing.