Energy costs worry manufacturers most
20 May 2011
London – Rising energy costs have pushed ahead of labour costs, falling consumer spend and regulatory redtape to become the biggest concern for UK manufacturers, an IMechE (Institution of Mechanical Engineers) survey indicates.
The UK is moving forward with its transition to a low carbon economy, and this is going to mean higher energy costs for everybody, noted the organisation’s president John Wood – commenting in a statement about the survey of 1000 IMechE members working in the manufacturing sector.
“But manufacturers are worried, and Government needs to make sure it doesn’t force energy intensive industries out of the UK and into countries with more lax climate change targets. This is of benefit to neither the UK economy nor the environment,” said Wood.
“The Government needs to move forward quickly with its promises to mitigate the effect of ambitious climate change targets on energy intensive industries in the UK,” he added.
Of the 1,000 manufacturers polled 60% said that increasing energy costs were of “high concern” to their business, while 52.4% said the same about increasing cost of supplies and components, 43.2% on administrative burden or regulation and 35% said rising labour costs.
Falling consumer spend was of high concern to 30.9% of manufacturers, while exchange rates just 29.1%.
