The UHY report paints a bleak picture for UK manufacturing, but is it as black and white as they outline? Especially when the latest edition for The Manufacturer painted an altogether more rosy winter’s tale?
The UK has some of the most advanced technology in the world, and companies are moving to hi-tech from basic commodity production. Much of UK manufacturing depends on demand higher up the value chain e.g. If Jaguar launches a model UK auto the supply chain kicks into gear.
There are of course a number of headwinds like Brexit, tariffs, currency issues and potential job shortages as EU workers leave the UK. However, the UK is still one of the largest economies in the world and its liberal economy is attractive to overseas investors.
What is key is manufacturers plan now for Brexit. The Treasury Committee of the House of Commons is inviting businesses to submit their views by 31 January 2017 on whether the UK Government should seek a transitional trade arrangement on Brexit with the EU. Make sure your voice is heard.
THE UK manufacturing industry recorded some of the biggest job losses last year. According UHY Hacker Young, the industry had some of the biggest job losses of all sectors across the UK economy. Out of 69 sectors, manufacturing made up three of the worst five areas. UHY Hacker Young said the drop in numbers could be attributed to the ongoing shift in manufacturing to places where labour costs are lower, Paul Daly, partner at UHY Hacker Young, said: "Although the weaker pound should make exports cheaper, the fall in output last quarter for manufacturing overall is a worrying sign that the full effects of the Brexit vote are yet to be realised." Confidence in the manufacturing sector dropped last month, with the weak pound putting pressure on manufacturers buying materials from abroad.