Manufacturers ‘capitalising’ on weaker pound, says report

The report also reveals a further 44% of manufacturers are refocusing on internationalisation in light of the UK’s decision to leave the EU, while low interest rates (20%) and a lower regulatory burden (17%) were also seen as benefits to UK manufacturing.

Meanwhile, 65% said they did not have plans to reduce investment intentions, and 60% said that despite Brexit, they would continue investing in research & development and innovation.

Tom Lawton, head of BDO Manufacturing at BDO LLP, said: “The UK manufacturing sector remains critical to the future success of the UK economy. Despite uncertainty at home and abroad, it is promising to see firms are pushing forward and adjusting their business plans to make the most of the opportunities available.

The report does reveal some negatives, however, as 45% of manufacturers have little or no confidence that the current government can negotiate a favourable trade deal with the EU.

What’s more, 37% favour the UK remaining a member of European Economic Area (EEA), which would include access to the single market, free movement of people, financial contribution to the EU and accepting some EU regulation.

Lawron added: “It’s important that the Government delivers a practical and robust industrial strategy that is focused on the needs of the manufacturing sector.”