Just a third of companies say that Brexit has had no impact on their plans.
Just a third of companies say that Brexit has had no impact on their plans.

UK Manufacturing Investment Slows, Outlook Balanced

UK Manufacturing Investment Slows, Outlook Balanced

Investment by Britain’s manufacturers has seen a reality check in response to the continued political uncertainty, research has found.
According to the EEF/Santander Annual Investment Monitor, while demand conditions should be spurring on investment, just a third of companies say that Brexit has had no impact on their plans, Machinery.co.uk reported.
A similar proportion are only investing to satisfy current plans and waiting for clarity on any deal before investing further, while at the other end, 13% of companies are holding off investment altogether until there is further clarity on a Brexit deal.
The report says that taken together, this leaves the outlook for investment by manufacturers finely balanced with only a narrow majority expecting to be investing more on new equipment in the next two years. While the reticence emanating from other parts of the global economy has diminished, the survey reflects increasing Brexit-related uncertainty.
This indicates that while manufacturers may be investing to satisfy current plans or, expand capacity, they are not investing in improving their production capacity. The survey’s spotlight on investment in automation shows that industry is making only slow progress on automating manufacturing processes, with industry being held back not just by caution but also by challenges from the cost of technology, uncertainty about returns and the capability to successfully implement change.
In response, EEF considers that boosting investment and productivity should be at the forefront in the forthcoming budget statement.
EEF chief economist Lee Hopley says: “Manufacturers have navigated a panoply of demand-related challenges in recent years, which have taken a toll on the sector’s appetite and ability to invest. With global demand on the up, conditions should be ripe for industry to make new investments in capacity and productivity enhancing technology. But Brexit means the future outlook for investment is not clear cut.
“Political uncertainty is adding to the hurdles of cost and lack of skills in holding back spending on automation technology. The forthcoming budget can at least start to address the latter of these challenges, starting with an ambitious industrial strategy that tackles barriers to investment head on and ensures UK manufacturers are equipped to compete for the future.”
Hopley said the chancellor, Philip Hammond, should use his forthcoming budget on November 22 to introduce measures that would encourage business investment.



Short URL : https://goo.gl/pxhvt5
  1. https://goo.gl/7Q4xSM
  • https://goo.gl/FKvZQP
  • https://goo.gl/h49jgF
  • https://goo.gl/MgjQPx
  • https://goo.gl/Dgrq2A

You can also read ...

Cyber threats are ever-evolving.
The White House released a report that found that the economic...
Global Investors Target Zimbabwe Energy Sector
Zimbabwe has become a magnet for billionaire global firms such...
BSP said the planned RRR cuts are part of the bank’s financial market reforms.
The Bangko Sentral ng Pilipinas said it was reducing banks’...
FAO regional representative Julio Berdegue (R), and the deputy regional representative Eve Crowley.
Identifying territories where rural poverty is most entrenched...
Asean Labor Flows Hit a Wall
Tighter restrictions on foreign labor in Malaysia and Thailand...
Lagarde Backs Creation of European Monetary Fund
International Monetary Fund chief Christine Lagarde has no...
The country’s GDP grew by 3.2% in 2017 but will  edge down in the coming years.
A report by the International Monetary Fund showed Sunday that...
Baby-boomers will start turning 75 or older in 2022, which is expected to trigger a surge in health care and nursing care costs.
Amid stalling inflation and ballooning government spending,...

Add new comment

Read our comment policy before posting your viewpoints