Why Manufacturing and Engineering firms believe Brexit will be good for business

  • March 31, 2017

With most manufacturers voting to remain, it is interesting to learn that UK manufacturing and engineering firms now believe Brexit will be good for business, and that there are already steady reports in gains of revenue and profit as we approach mid-2017.

A survey by Subcon 2017 revealed a marked increase since 2016 in firms who believe their company will have a stronger future once Britain exits the EU. 40% of the 269 businesses polled answered ‘yes’ compared to 14% 11 months ago.

Gordon Kirk, Event Director, Subcon, commented: “It’s encouraging to hear that industry is feeling confident and positive about the future and our poll certainly supports that in relation to Brexit.”

The survey also asked if businesses thought UK manufacturing and engineering as a whole will have a stronger future once Britain is no longer part of the EU. 45% answered yes, a 50% increase on last years 30%.

New technology, models and investments, and company owners aim to reverse the depressing decline we have seen since the recession in 2008.

One major impact of the referendum has been the sterling’s rapid depreciation against other currencies, making exports cheaper, which in turn makes buying British goods more attractive.

The pound has declined by about 15 per cent against the dollar and the euro since Britain’s referendum on EU membership. It is estimated that profits in manufacturing could increase on average by about 16 per cent of value added, mostly due to the fall in sterling.

According to the MEM, people are in high indications that the government realises how important engineering and manufacturing are to the overall economy.

Making up approximately 10% of the UK’s economy and contributing approximately 280bn gross added value, means these two industries must not be overlooked for Brexit to be a success.

We are yet to break away from the EU, and the UK is still at least two years away from breaking away, therefore the full impact of Brexit is yet to be felt.

 

SURVEY RESULTS IN FULL 

2016: Do you think Britain should leave or remain in the EU? 
Leave  37%
Remain  50%
I don’t know  13%
  
2016: Do you think your company will have a stronger future if Britain leaves the EU? 
Yes  14%
No  79%
I don’t know  7%
 
2017: Do you think your company will have a stronger future now that Britain is leaving the European Union?
Yes  40%
No  46%
I don’t know  14%
  
2017: Has your opinion changed in the last 12 months?
Yes  16%
No 83%
I don’t know  1%
 
2016: Do you think the UK manufacturing/engineer industry will have a stronger future if Britain leaves in the EU? 
Yes  30%
No  62%
I don’t know  8%
 
2017: Do you think the UK manufacturing/engineering industry will have a stronger future now that Britain is leaving the European Union?
Yes  45%
No  41%
I don’t know  14%
 
2017: Has your opinion changed in the last 12 months?
Yes  20%
No  80%

2017: Do you think your business/industry will suffer if Brexit impacts free movement of labour? 
Yes  46%
No  47%
I don’t know  8%

 

David Lewis, managing director, integra people, warrington

 
 
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