Britain’s manufacturers are set to ramp up their investment with a focus on boosting skills, net zero, and R&D.
According to Make UK analysis of official data, manufacturing investment remains 3% below the last pre-pandemic year in 2019. While there are now clearly downside risks in the light of current market and business sentiment, the survey shows manufacturers see increasing investment as mission critical as they look to tackle supply chain disruption, labour shortages and increased energy costs, as well as improving productivity.
While the pandemic has stopped some investment in its tracks and, despite current uncertainty, manufacturers recognise that upping their investment is fundamental to securing their future. If we are serious about boosting growth and improving productivity, then making a step change in the UK’s business investment must become a central tenet of Government policy. This must involve at a top level providing economic and political stability and carefully designed and targeted incentives which properly reflect the life cycle of manufacturing investment.
Fhaheen Khan
Senior Economist, Make UK
The UK economy needs a buoyant manufacturing sector that continues to make investments in capital to improve productivity and compete on the global stage. With just nine per cent of manufacturers confirming Government support even factored into their decision-making process regarding investment, policymakers have a huge opportunity to do more in the future. More generous and accessible incentives and more time to make use of them would be welcomed by business leaders across the industry.
Mike Thornton
National Head of Manufacturing, RSM UK
